Let Markets Be Markets

Joseph Stiglitz is a Nobel-prize winning economist. He is also a former Chief Economist of the World Bank. He resigned / was forced out in 2000 because of his criticism of IMF and US Treasury policies in forcing "free-market fundamentalism" onto developing and emerging market countries in the 1990's. He has been a sharp critic … Continue reading Let Markets Be Markets

Against Monopoly: Most of the big banks are insolvent

via Against Monopoly. The steady drip of details about the financial crisis continues. PBS News Hour has Paul Solman interviewing an ex-bank regulator, William Black who now teaches at the University of Missouri link here. Points Black makes that are worth thinking about: Following the S & L collapse, more than 1000 executive insiders were … Continue reading Against Monopoly: Most of the big banks are insolvent

Moral Hazard and How to Reform Our Financial System – NYTimes.com

Former Chair of Federal Reserve, Paul Volcker notes both the need for banking industry regulatory reform and that one of the needs to address the "moral hazard" that currently exists in the system.  "Moral hazard occurs when a party insulated from risk may behave differently than it would behave if it were fully exposed to … Continue reading Moral Hazard and How to Reform Our Financial System – NYTimes.com

More On Banking Regulation: How To Do It Right

If we are to avoid another crisis and melt-down of the banking/financial sector such as we had in 2008, then we must change the rules of the game.  There must be institutional change.  Canada avoided much of the financial crisis.  Why?  Well, part of it is regulation (something Canadians are more comfortable with than Americans) … Continue reading More On Banking Regulation: How To Do It Right