You like to rally against regulatory capture and cite is as prime evidence against "big government". You are absolutely right - it is huge problem.

My understanding of libertarianism is that insider trading isn't condoned.

Now what do you suggest we do about information capture than happens in the absence of regulation? Free Market can't function if large number of actors are at substantial information disadvantage. With enough effort you can convince large number of people that Black is White and make money doing so. This is like insider trading, but on much larger scale.

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