WSJ Editor Defends 'Too Big to Fail' Banks - David Wessel

Complete video at: http://fora.tv/2009/09/22/Ben_Bernanke_vs_the_Great_Panic_David_Wessel

David Wessel , Wall Street Journal economics editor and author of In Fed We Trust, explains why some financial institutions are viewed as "too big to fail." Although these large institutions are inherently risky, Wessel believes they are necessary in a global economy. The question, he says, is how do we regulate them?

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How did we find ourselves confronting the worst threat to the US economy since the Great Depression?

Journalist David Wessel explains what the Federal Reserve did right and did wrong, where the economy stands now and where it is headed. - Commonwealth Club of California

David Wessel is economics editor for The Wall Street Journal and writes the Capital column, a weekly look at the economy and forces shaping living standards around the world. He is responsible for overseeing coverage of the Fed and the Journals daily coverage of the macro economy, global trade and economic trends. He appears frequently on National Public Radio.

His book, In Fed We Trust: Ben Bernanke's War on the Great Panic, will be published August 4, 2009.

Previously, Mr. Wessel was deputy bureau chief of The Wall Street Journal's Washington bureau. David joined The Wall Street Journal in 1984 in Boston, and moved to Washington in 1987. In 1999 and 2000, he served as the newspaper's Berlin bureau chief.

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News & Politics

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• big
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• fail
• economic
• crisis
• economists
• economy
• finance
• collapse
• failure
• free
• market
• regulated
• gm
• aig
• government
• fora.tv
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[finallyfreethinking]

The economy is an illusion. The monetary system is only as good as the people believe it to be. There is no such thing as too big to fail. The market would correct the problem if the bureaucrats would simply stay out of the way.

[zetasan]

US dollar = dead, the middle class = dead, the poor = already dead, United States = dead, Big Banks = big bonuses. Happy?

[ubuibiok]

Horse Shit...which has even less value the Bull Shit... Banks depend upon Depositors.

He is arguing that we depend upon Banks.

The Banks that got into trouble were and are still full of greedy , thieving parasites and any action that supports there survival at public expense must be resisted at every step.

Vote the "Nasty Bunch Out", a posted reply comment to this will get you an insight as to how bad you have been screwed.

UBUIBIOK

[xwidget]

The roots of the banking problems date from the repeal of laws, many dating from the 1930's, that restricted the risk that the banks could take because of the potential for collapse. Blame congress, while under the control both parties, that "responded" to the banking lobby over the past two decades. As usually happens, the regulators came under the control of those they were charged with regulating.

[hasatum]

Force breakups? You don't have to force anything. These institutions are bankrupt and have been more than once. Just enforce the laws that are on the books and its done. There's not a chance in hell that the Fed would even consider taxing these institutions; it doesn't control them, they own it. Failure must once again be a real option. Regulation has failed and taxation is ridiculous. Real failure must again become an option.

[funkalunatic]

B.S. Firstly, letting the big banks fail only has dire consequences for the large financial sector. The real economy doesn't depend on big banks. The big banks depend on the real economy. Secondly, immense banks and super-global conglomerates aren't some kind of strategic global asset for the nation. The contrary is true. They capture, leach off of, and compete with the government and the public.

[kja5]

Wouldn't the smaller banks just gain the failed bank's depositors and grow because of it?

You know, how capitalism works?

And you can prevent future failures by increasing the required reserves to 25% instead of 10%

[Muchodelcrazy]

lol "champaign" funding. Wrong administration, btw.

[Mastikator]

They need to fail!

[dlucas90]

The Soviets had the biggest "too big to fail" monopolistic government and look how great that turned out?!