I managed to read the article, interesting section near the end which indicates the line that will be used by lawyers. Sims is using the "nirvana fallacy", a term coined by Harold Demsetz. That's a regulator comparing the current market-based outcomes to an idealised regulatory alternative.
Demsetz warned that, those who adopt the nirvana viewpoint seek to discover discrepancies between the ideal and the real and if discrepancies are found, they deduce that the real is inefficient,” the submission said.The submission says: “The appropriate comparison is not between the current market-based outcome, with all its flaws, and an idealised regulatory approach with all its presumed benefits; the relevant compactor is the regulatory approach – with all its benefits and flaws – which are well documented in the economic literature and historical experience.“At its heart, the nirvana fallacy is a regulator’s choice of an unrealistic counterfactual in assessing the costs and benefits of a potential intervention.’’
TPM Price at posting:
$6.07 Sentiment: Hold Disclosure: Held
