Prof G Markets · Tuesday, August 4, 2026
Michael Green criticizes US regulators for allowing risky financial products, comparing the situation to not labeling addictive drugs or food ingredients, which was a lesson learned from a "buyer beware" era. He argues that "market fundamentalism" and a lack of education contribute to retail investors being drawn to speculative vehicles.
“I think it's important to distinguish between what happened in South Korea and what we're seeing here in the United States. In South Korea, they actually banned the leveraged ETFs.”
“In the United States, we are still trapped by market fundamentalism and we see that in everything from Kevin O'Leary's recent testimony at the Fed to the general view on regulatory frameworks within the United States. Let the market decide.”
“There's a very real reason we don't do that. There's a reason we now have labeling on drugs that tells us what the addictive contents of those are. We now have labeling on food that tells us what the ingredient list is.”
“I think in this case, we have created effectively a gambling environment in which people are increasingly nihilistic in their interpretation of prices, effectively assuming that government is stepping in to support these prices or simply print money to create wealth to paper over the many problems that we see in our society.”