Added: 3 years ago
From: madashelldude
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  • Great Vid, but infinite regulations cannot solve the problem. The harshest regulator is the threat of going out of business. The attempts at regulation are the very reason banks become too big to fail. Banks have been permitted and encouraged to gamble with the publics money, under the guise of regulation, so they're going to take lots of risk. There will always be some way to bypass regulation. If they faced a risk of bankruptcy, they'd regulate themselves.

  • Eliot Spitzer agrees with you. He thinks there were enough regulations in place it's just the Bush administration didn't enforce them. I happen to agree with much of that because derivatives are also capable to raise good overnight loans for venture capital and high tech investments. They were used in the 90s. On the other hand I think having 30% of our econ dedicated to the plumbing of capitalism ie. finance is a bit excessive. 5% sounds much better.

  • @myheadhurtsnow

    The threat of going out of business and tougher regulation aren't mutually exclusive.

    Also if regulation is in place in regards to the maximum size allowed for a financial institution (in many countries there is a ban of markets shares in excess of 25% or even less), the probability of receiving a bailout when going under will diminish and thereby reduce the willingness to gamble too much.

    Letting no-one think they are invaluable will limit risk-taking.

  • Stiglitz is who Obama should have picked as his top economic advisor....he gets it. We can only hope the Larry Summers and Tim Geitner's of the world have learned from their mistakes.

  • Unfortunately Obama's hands are tied until Ben Barnanke's term expires, ie. 1 more year. I think until then Wall Street is dictating a lot of what's happening in the background. We know what happens to politicians who step out of line: just look at Spitzer and Blagojevich.

  • You ARE NOT defending Spitzer and Blago!! OMG-You're a conspiracy theorist!  God flippin' help us.

  • Excellent, everyone should see this. Thank you for posting this.

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