Author Topic: Hank Paulson: More crises to come  (Read 452 times)

0 Members and 1 Guest are viewing this topic.

Online mystery-ak

  • Owner
  • Administrator
  • Hero Member
  • ******
  • Posts: 250,249
Hank Paulson: More crises to come
« on: September 15, 2013, 12:56:01 PM »
http://www.politico.com/blogs/politico-live/?hp=44

Hank Paulson: More crises to come
By ANDREA DRUSCH |
9/15/13 11:54 AM EDT

On the five-year anniversary of the U.S. financial meltdown, former Treasury Secretary Hank Paulson said on Sunday the country can count on more financial crises to come, but hopefully none the size of 2008’s.

The economy is "much better off than it was,” he said of the progress made in the past five years. “We avoided a very bad fate, things could have been as bad as the Great Depression.”

Joined by former Rep. Barney Frank (D-Mass.) on NBC’s “Meet the Press,” Paulson painted a positive picture for the future of the U.S. economy.

“Today the economy is growing at 2 percent, although that’s not enough, it’s something we can take satisfaction in given the amount of leveraging that needed to be done,” he said.

Of the work still to be done, Paulson listed tax reform and fixing Fannie Mae and Freddie Mac.

Frank, co-author of the 2010 Dodd-Frank financial reform act, told host David Gregory that he believed the crisis five years ago could not happen again today in the same way. He blamed the 2008 meltdown on bad mortgages, and said that that problem had been resolved.

“There are some large institutions that are too big to fail without taking account for the consequences,” Frank said. “But what we have now is the power in federal officials to step in and put those institutions out of business.”

Support the USO

Offline flowers

  • Hero Member
  • ****
  • Posts: 18,680
Re: Hank Paulson: More crises to come
« Reply #1 on: September 15, 2013, 01:22:22 PM »
 :nometalk:


Online truth_seeker

  • Hero Member
  • ****
  • Posts: 17,033
  • Common Sense Results Oriented Conservative Veteran
    • The place where argument addicts can go
Re: Hank Paulson: More crises to come
« Reply #2 on: September 15, 2013, 01:50:54 PM »
I listened to a knowledgeable person, involved with the decision to enact TARP, who stated who stated that going forward, eventual breakup of big banks is almost inevitable (and necessary).

Making already "too big to fail" banks even bigger was an inevitable outcome, but now needs solving.

 

Online Oceander

  • Technical
  • Hero Member
  • ****
  • Posts: 44,018
  • #ToldYouSo
Re: Hank Paulson: More crises to come
« Reply #3 on: September 15, 2013, 09:38:12 PM »
I listened to a knowledgeable person, involved with the decision to enact TARP, who stated who stated that going forward, eventual breakup of big banks is almost inevitable (and necessary).

Making already "too big to fail" banks even bigger was an inevitable outcome, but now needs solving.

 

Big banks should not be coddled but, more so than any other bank, should be left to stand, or fall, on their own; we have a robust receivership system within the various bank regulatory agencies that are more than adequate to pick up the pieces of a failed bank.

If a bank cannot stand on its own feet, then it should be broken up - by its own failure.  Citigroup, for one, would have failed long, long ago but for the political cover - i.e., crony capitalism - it's been able to "purchase" over the years.


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf