#USA #Polanyi #Disembeddedness #Neoliberalism #Deregulation: "It involved a profound redefinition of the roles and responsibilities of both the government and market actors in mitigating risk. For one, the government did not adopt necessary measures to develop substantive risk regulation tools to respond to the evolving realities of financial markets, giving rise to another, highly important but less mentioned facet of neoliberal politics: regulatory drift.
More importantly, when and where the government did regulate, it increasingly aligned with the premises of market discipline and individual rationality: it markedly pivoted toward a micro-orientation in regulation, focusing prudential regulation on the stability and security of individual entities rather than the entire system (micro-prudential regulation) and entrusting financial institutions with defining the terms of risk management, premised on the belief that these entities were best equipped to handle this responsibility (a practice known as principles-based risk regulation). Furthermore, it heavily relied on information-based regulation. The rise of disclosure requirements, the growing prominence of credit rating agencies, and the expansion of financial literacy programs were all integral to this transition."
https://economicsociology.org/2024/08/11/polanyi-on-wall-street-disembeddedness-in-financial-times/