How We Should Be Preparing For The Next Banking Crisis
By Tom Evslin: Since we bailed out the investment banks, we've done almost everything possible to assure that we will have another banking crisis and another bailout opportunity.
- The banks that were too big to fail before have gotten even bigger as weak banks were merged into their less weak brethren. TARP money was used to finance the consolidation.
- Nothing effective has been done to limit the speculation banks can do with federally insured deposits. The Barney-Frank bill is as ineffectual as you would expect it would be, since it was written by the foxes who guard the henhouse.
- Even the compensation of bailed-out bankers is still rising beyond the stratosphere. This isn't the reason why the Occupiers have to repay their student loans; but it is outrageous. During the bubble bank presidents were supposedly being compensated – like football players – for success; apparently failure demands an even higher reward. We wouldn't