September 12, 2013
How to Stop the Next Financial Crisis: The Fed Might Be Our Last Great Hope

Five years ago, a massive failure on the part of financiers and financial regulators precipitated the fall of Lehman Brothers and nearly crashed the global economy. Today, investors, taxpayers, and elected officials are entitled to ask: Are we safer now? 
At one level, yes. We are both healthier and smarter. We are healthier because both banks and households have repaired their balance sheets, improving the economy’s ability to withstand future shocks. We are smarter, because we have discarded the myth that the Federal Reserve can easily clean up the fallout from financial excesses and replaced it with an attitude of vigilance and caution about financial excesses.
This raises another question: have we created public policies that make us safer? 
Read more. [Image: Reuters]

How to Stop the Next Financial Crisis: The Fed Might Be Our Last Great Hope

Five years ago, a massive failure on the part of financiers and financial regulators precipitated the fall of Lehman Brothers and nearly crashed the global economy. Today, investors, taxpayers, and elected officials are entitled to ask: Are we safer now? 

At one level, yes. We are both healthier and smarter. We are healthier because both banks and households have repaired their balance sheets, improving the economy’s ability to withstand future shocks. We are smarter, because we have discarded the myth that the Federal Reserve can easily clean up the fallout from financial excesses and replaced it with an attitude of vigilance and caution about financial excesses.

This raises another question: have we created public policies that make us safer?

Read more. [Image: Reuters]

  1. propaganda333 reblogged this from theatlantic
  2. conniepearson54 reblogged this from theatlantic
  3. stringsdafistmcgee reblogged this from theatlantic
  4. thenelsontwins reblogged this from theatlantic
  5. masteradept reblogged this from theedjcagedbird
  6. jimrehs reblogged this from theatlantic and added:
    Good question.
  7. gafasdelsol reblogged this from theatlantic
  8. xenapwns reblogged this from feltknickers
  9. misterdelfuego reblogged this from theatlantic
  10. feltknickers reblogged this from theatlantic
  11. theedjcagedbird reblogged this from theatlantic
  12. beardedninjas reblogged this from theatlantic
  13. nymphobserver reblogged this from theatlantic
  14. workonprogress reblogged this from theatlantic
  15. political-gravitas reblogged this from theatlantic
  16. catfacemeowmers reblogged this from theatlantic and added:
    NO, WE HAVE NOT.
  17. theatlantic posted this