Save Me From the Zombie Banks.

Bankers now fear a new regulatory framework is coming they say would prevent the kind of economic growth American had had before the current bust. I’m not really well versed on this subject, but it doesn’t seem right to me. If the growth America had experienced was so fantastic, why didn’t ordinary Americans’ lives get better? And why did it all disappear so quickly, if it was based on something real and not just making a few people richer on paper?

Then, there’s Elizabeth Warren, talking good sense as usual.

She uses history, and not economic models, to tell us that for 50 years after the Great Depression, we changed laws and avoided the boom and bust cycles that had plauged America from its inception. And then, once the framework began to unravel, we started again, culminating in the most recent bust. That’s why I don’t believe the bankers so much. I’ve got really smart people like her telling me something that makes more sense. Save me, Elizabeth Warren. Save me from the zombie banks.

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4 thoughts on “Save Me From the Zombie Banks.

  1. bitchphd April 17, 2009 at 12:23 pm Reply

    I thought preventing the kind of growth (aka “bubble”) that preceded this collapse was sort of the point.

    • quadmoniker April 17, 2009 at 12:27 pm Reply

      It is. But bankers think rapid economic growth is an unalloyed good. That’s Americans’ objections to European-style regulation, taxation and safety-net programs. European economies don’t grow as quickly, so ardent capitalists see that as a bad thing. I think the more American taxpayers shoulder the downside risks of that kind of growth, the less they’ll agree with them.

  2. Big Word April 17, 2009 at 1:21 pm Reply

    Why is it so hard to get people to see that unfettered economic growth is a bad thing, especially when so much money gets wiped out so fast in busts?

  3. blackink12 April 17, 2009 at 4:17 pm Reply

    And yeah, thought this is waaaaay above my head and my paygrade, the thing that sort of flummoxes me is that they’re not really creating growth or wealth. In fact, it seems as if they’re not creating anything other than the illusion that they’re creating growth and wealth.

    With Wall Street’s p.r. push, we’ve been completely bamboozled on that front for years now. I’d hope we would be smarter than that this time around. Elizabeth Warren seems to be, at least.

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