3 ms·

I don’t understand your point, but yes, aspects of the US financial industry were improved as a result of the 2008 crisis. That happened because of roughly two

by hluska 3y ago

I don’t understand your point, but yes, aspects of the US financial industry were improved as a result of the 2008 crisis. That happened because of roughly two years of work by congressional and senate oversight committees. Other things (ie - derivatives) were not properly regulated. If you’re interested in what one form of regulation could have looked like, you should look up Brooksley Born. Most specifically, what happened to her when she proposed regulation. Ben Bernanke spent so much time testifying and was so bothered by his experience that he used to be a registered Republican. Now he’s independent.

deleted 3y ago
[deleted]
no_wizard 3y ago
For anyone interested, here's a good summation of the Brooksley Born story[0]. Its a tragedy through and through. She faced harassment from all sides and her expertise was brushed off carelessly. Its really truly sad. The same thing happened to Raghuram Rajan from the IMF. He delivered a paper criticizing the financial sector entitled "Has Financial Development Made the World Riskier" which argued that disaster loomed. The paper, which proved accurate, was aggressively criticized by Larry Summers, who served as the director of the National Economic Council in the Obama Administration. He was also ostracized for expressing a legitimately dissenting opinion on how financial markets in their then current form were a great risk the global financial system [0]: https://www.sfgate.com/business/bottomline/article/Brooksley-Born-foresaw-disaster-but-was-silenced-2454453.php https://www.sfgate.com/business/bottomline/article/Brooksley...
- hluska 3y ago
  That link is an excellent summary! It’s quite interesting because we can look back in time and find some excellent people who sounded the alarm bells. They all got trounced. I think if we can take any solace, it’s that Larry Summers did not serve as Obama’s Secretary of the Treasury. It went to Tim Geithner instead.

by hluska 3y ago

deleted 3y ago

[deleted]

no_wizard 3y ago

For anyone interested, here's a good summation of the Brooksley Born story[0]. Its a tragedy through and through. She faced harassment from all sides and her expertise was brushed off carelessly. Its really truly sad. The same thing happened to Raghuram Rajan from the IMF. He delivered a paper criticizing the financial sector entitled "Has Financial Development Made the World Riskier" which argued that disaster loomed. The paper, which proved accurate, was aggressively criticized by Larry Summers, who served as the director of the National Economic Council in the Obama Administration. He was also ostracized for expressing a legitimately dissenting opinion on how financial markets in their then current form were a great risk the global financial system [0]: https://www.sfgate.com/business/bottomline/article/Brooksley-Born-foresaw-disaster-but-was-silenced-2454453.php https://www.sfgate.com/business/bottomline/article/Brooksley...

hluska 3y ago
That link is an excellent summary! It’s quite interesting because we can look back in time and find some excellent people who sounded the alarm bells. They all got trounced. I think if we can take any solace, it’s that Larry Summers did not serve as Obama’s Secretary of the Treasury. It went to Tim Geithner instead.