Tuesday, April 6, 2010
Economist's cry: Break up the banks!
Simon Johnson talks about his new book 13 Bankers. The Wall Street Takeover and the Next Financial Meltdown and some predictions for financial crises in the future. Also, which banks he trusts with his money.
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i noticed that he said another crisis like the one that sparked the Great Recession is right around the corner, and that in a global economy we're likely to have such crisis every four or five years.
ReplyDeletei think that part of the problem is that ever since the riegle-neal act 0f 1994 the banks have become too powerful and they now have too much of an influence on the money supply. i think that it would help if more legislation was made to regulate the banks.
ReplyDeleteI agree; I think bank regulation is definitely needed and I think it will happen soon.
ReplyDeleteIt is important that the government reimpose strong government regulation much like the Reigle-Neal Act of '94 because they have adopted much too risky behavior. Coupled with the removal of risk-based premiums during the FDIC Reform Act of 2005 has allowed for firms to continue to grow and make risky decisions. It is interesting to see what the government will pass next to ensure more regulation.
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