Great Depression 2.0, back in 2008, was caused by big banks and insurance companies going broke. They went broke by making loans to flaky borrowers (Greece, Puerto Rico) and flaky deals (mortgage backed securities and credit default swaps), not keeping enough cash on hand to cover losses. As the smoke cleared, and we launched into an 8 year depression, the Democrats passed a bunch of regulations (Dodd Frank) , and failed to prosecute anyone who was running the failed firms.
I say we could have a more dependable financial sector if the people running it, CEO's and the like, had a real fear of personal retribution when they drove their companies onto the rocks. Start with more aggressive prosecution under existing laws. Pass a law making financial executives personally liable for failure of their firms. Enlist that army of unemployed lawyers to sure to socks off anyone who bankrupts his bank.
In short, scrap the regulations. Bring on the ambulance chasing lawyers.
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