Regulatory Arbitrage

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SeijaKessen
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Joined: 08 Jan 2012, 21:34
Location: USA

Re: Regulatory Arbitrage

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strad wrote:I think it doesn't matter who is hurt.
Immorality is immorality.
How can you call it apples and oranges?
It's exactly the same just different arenas.
Odd that you have such a sliding scale of morality.
So let's see...it matters who you steal from? If it's someone you don't like...that's ok?
Reminds me of some kids around here, that were upset that their friends who got caught were in big trouble for breaking into a pawn shop. Their rational?
It was a pawn shop and no one got hurt.
Look if your paid to find an end run around the rules it doesn't matter if it's Wall Street..the NFL..UFEA..golf...auto racing..political campaigning..It's all the same...Just the arena is different and it's just as immoral.
But I didn't expect, though I guess I should have, for this to be an arguement.
Let me ask you, how do you reconcile what I said regarding Colin Chapman?

I would really hesitate to qualify the actions of a F1 team that finds a loophole, as stealing.

What I am getting from you is that you're arguing for a closely locked spec-race along the lines of say NASCAR where the rules are so restrictive, it's near impossible for any team to get a decisive advantage for a sustained period of time. I was watching the Coke Zero 400 last night, and there was almost no separation between the cars as a result. Anyone could have won the race because of how close together everything was.

F1 on the flipside ---historically speaking anyway--- has ALWAYS been about pushing the limits of technological engineering.

Every single F1 era from the days of Jimmy Clark to Jochen Rindt to Ayrton Senna to Michael Schumacher to now has been about trying to find an advantage in an increasingly more restrictive rule book. When a team does find a way to do something that gives an advantage, I'm not sure how it is "stealing" when you consider the entire premise on which F1 has existed.

Wall Street on the other side, probes for the quickest, easiest way to make money. That usually involves deceit and blatant lying; repackaging mortgages in such a way, that according to the ratings scale, they look ok, even though the reality is not. Yes they exploited a rule in the way a F1 team may exploit the rule book. The difference here is the Wall Street firm(s) know the entire thing is a fraud, but are just hoping for enough time on their end so they can cash out and leave everyone else to sort out the remains when it crashes down. There is no transparency involved with Wall Street. There is transparency in F1, and if a creative interpretation of the rules is not to the liking of those upstairs, it will be ended. When it comes to Wall Street, no such thing happens. They just move on like the vampire squid they are, to suck the life out of the next thing they can find.

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strad
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Joined: 02 Jan 2010, 01:57

Re: Regulatory Arbitrage

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You try to get the most out of what you have,
Within the rules
What I am getting from you is that you're arguing for a closely locked spec-race along the lines of say NASCAR where the rules are so restrictive, it's near impossible for any team to get a decisive advantage for a sustained period of time
No...That's what the FIA want and are doing.
I guess I am really poor at explaining, even though English is my primary language, I want just the opposite.
BUT, as much as I hate to pick on Ferrari, this bit with the hole is a perfect example.
The FIA said no to "holes" just ahead of the rear wheels...Pretty clear to my mind, but to those involved in Regulatory Arbitrage say.."look boys..All we have to do is cut a slot to the edge of the floor and suddenly it's not a hole. I know it contravenes what the FIA want but hey,,maybe we can get an advantage til the FIA are forced to make yet another ruling.
The Regulatory Arbitrage is what causes much of the rules and constant updating of the rules.
My point if I have one, is that because of excess regulations it leads to Regulatory Arbitrage which I find distasteful. It's not being clever,,,,moving the engine to rear is clever, inventing something is clever. Doing an end run around the rules is cheating.
Last post...I promise..ya want more so you can claim victory..Fine, but I didn't want an arguement but rather a discussion
We've had that. Thank You Good Night.
To achieve anything, you must be prepared to dabble on the boundary of disaster.”
Sir Stirling Moss

mx_tifoso
mx_tifoso
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Joined: 30 Nov 2006, 05:01
Location: North America

Re: Regulatory Arbitrage

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If this is how you feel then fine, but what matters is that you don't participate within the world of F1 where they try to find speed out of every possible piece of the puzzle. A team would be lost if they felt that extracting the most of out the regulations is "bad".

And no one is arguing, this is called a forum for a reason, so we can converse with each other. There's no need to take it so personally.

P.S. Learning how to use something as simple as quotations on here would be greatly appreciated, so we know who said what. Sometimes I can't recall exactly so it would be very helpful.
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