L Randall Wray
That was L.Randall Wray speaking to the Real News Netrowk. Wray is exactly right, and he is right to say that the rational restructuring of banks will not occur absent another, if inevitable, crisis. But there is some hope. Lost in the Medicare, Mediscare spinning of last week's victory by Democrat Kathy Hochol in New York's 26th District was her message of sharing the burden of government by taxing the wealthy and corporations. Supposedly an anathema to Republicans, it instead seems to have touched a sense of common purpose. Revenue increases from ending the Bush tax cuts are enormously important, not so much for their revenue impact, but for the spending they might free up when the crisis hits.
Kathy Hochol.
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I appreciate this blog. Clarified so many things for me.
ReplyDeleteI agree with L. Randell Wray that reform will come again and probably very soon. The banks are not strong enough to withstand a series of euro defaults. If Ireland default then US banks are looking at $100 billion of losses. Portugal and Greece will add another $40 billion each. Though if it causes german banks to default then I suspect that there will be a series of US banks that collapse. So much for the return to the old ways. The real issue will be the reaction of Congress. If they capitulate to the banks lobbyists then the US could be facing a huge increase in debt, which would put the national credit rating at risk. Better to let the banks collapse and start afresh with a new financial system. Though will reforms actually go ahead?
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