Monday, March 31, 2014

The Astonishing Rise of the Financial Sector Must Be Stopped

Below is a link to an excellent review of recent academic papers rebutting the notion that bigger and bigger financial sectors (typically meaning bigger and bigger firms) and "financial innovation" are somehow good for countries and good for the world. This idea, popularized by the likes of Greenspan and Rubin has turned out to be patently false. Yet this Godzilla continues to control much of the government via vast lobbying and contributions. Obama has failed most spectacularly here. He had the best opportunity since Glass-Steagall to enact real bi-partisan reforms, but instead of taking back the country and economy for its citizens, he fell into the same damn trap as hundreds of politicians before him: he couldn't resist the money. He thought, instead of rejecting this filthy lucre, I'll take it and use it against the real enemies of the country (Republicans).  When will another chance come along?

The Banks that Ate the Economy by Howard Davies

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