Thursday, October 9, 2008

Common Sense for A Complicated Financial System

The Foundry
When a Nobel Prize-winning economist tells you something is too complicated to understand, pay attention. That is just what Nobel Laureate Gary Becker said about the financial crisis in Tuesday’s Wall Street Journal.

Still, Becker offers three sensible reforms:
  • increasing capital requirements on investment banks and money funds
  • speedy sale of Fannie Mae and Freddie Mac by the governmet
  • resisting future bail-outs to reduce the “moral hazard” problem


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I hope this blogs generates discussion about the important topics of our time. Reasoned disagreement is encouraged. Clarity is important