Thursday, February 6, 2014

Brad DeLong — I Remain Absolutely Gobsmacked by the Magnitude of the Crisis…


Washington Center for Equitable Growth
I Remain Absolutely Gobsmacked by the Magnitude of the Crisis…
Brad DeLong

Settling in to a "new normal" (equilibrium)?

1 comment:

Ralph Musgrave said...

So is anyone doing anything effective to make sure it doesn’t happen again? Of course not. As John Cochrane put it: “In recent months the realization has sunk in across the country that the 2010 Dodd-Frank financial-reform legislation is a colossal mess.”

Or as Britain’s former prime minister put it in the New York Times just before Christmas: “….most of the problems that caused the 2008 crisis — excessive borrowing, shadow banking and reckless lending — have not gone away. Too-big-to-fail banks have not shrunk; they’ve grown bigger. Huge bonuses that encourage reckless risk-taking by bankers remain the norm. Meanwhile, shadow banking — investment and lending services by financial institutions that act like banks, but with less supervision — has expanded in value to $71 trillion, from $59 trillion in 2008.”

See respectively:

http://www.hoover.org/news/daily-report/150171

http://www.nytimes.com/2013/12/19/opinion/gordon-brown-stumbling-toward-the-next-crash.html?_r=0