Dear Dr. Herbener;
I’m working my way through your videos on Samuelson and Nordhaus. I just finished episode 10 on regulation. I have three questions about regulations. First, do you think there needs to be a regulation prohibiting the naked short selling of securities or commodities? Second, what do you think of algorithmic trading or high frequency trading? Should this be regulated? Finally, we hear a lot about the evils of derivatives. Are derivatives a threat to the financial system? Should there be some regulation on derivatives?
I am enjoying your class and thank you for your time.