Monday, March 15, 2010
Doomed
In their working paper The Global Financial Crisis and the Shift to Shadow Banking, Yeva Nersisyan and L. Randall Wray argue that downsizing the financial sector is a prerequisite to saving the system. As a sector that is too complex to manage, as well as too politically powerful to regulate, the failure of the Obama Administration to downsize the publicly rescued financial sector, say the authors, means the system is doomed.
