Dauric wrote:I completely agree, however the ideological libertarian would claim that the marketplace polices fraud by making it harder for the fraudster to do business as their reputation proceeds them. (Alan Greenspan reportedly made this argument against the CFTC policing derivative investments*)
*Frontline: The Warning
again, my snark was not 'functional' libertarianism, but that hard ideological flavor that says all intervention in the marketplace is bad.
That does happen to some extent, but it's similar to allowing murder because people will naturally treat murderers in accordance with their reputation. Sure, that does happen, but it's messy, and not really a market. Libertarianism isn't anarchy, and I suspect you're thinking of an ideological stance that is closer to the latter than the former.
Market isn't a word that means "place without rules".