

:So we try to ensure that the process of deciding whether to introduce
:third parties isn't random.  As Steve said above, there are examples
:where third parties *are* less ignorant or corrupt than the two
:primary parties; should this knowledge not be able to help?

Of course it helps,  but only if the decision to involve third parties
is the primary partis' to make.  A corrupt and ignorant third party
isn't going to say,  "we're corrupt and ignorant,  we'll stay out of this".
Pointing out that they are corrupt and ignorant won't help,  they either
won't believe you or won't care.


:>  It's impossible (or at least beyond my abilities) to formulate a rule
:>that will always tell whether the involvement of a third party would be
:>good or bad,  but there's one that seems better than any other I've ever
:>heard suggested:  voluntary good,  mandatory bad.  That is,  a third
:>party should involve itself in a transaction ONLY at the request of
:>the primary participants.
:So we *don't* formulate a rule that will always tell; we try to use
:knowledge about other properties of situations.  To some of us, it
:appears that trying always to apply "voluntary good, mandatory bad"
:is not only less than optimal, it is in some circumstances seriously
:damaging.  The interesting question is to characterize those
:circumstances as best we can.

Look,  somebody has to have the power to decide whether a third party
will regulate your transactions or not.  That somebody is going to
be either you or the third party.  You can argue until you are
blue in the face that regulators shouldn't get involved (in fact,  people
have tried this),  they won't listen.    The fundamental question you
have to ask is,  whose decision is it whether or not to involve regulators,
ours or theirs?  After you've answered thed first question,  you can
try to move on to such questions as "should regulators be involved" and,  if
so,  "what regulations are appropriate?"  Although with your answer to
the first question,  the second and third are taken out of your hands.
