he 10-year anniversary of the 2008 financial crisis has unsurprisingly unearthed all manner of retrospectives on what happened, why it happened, and how what happened can be avoided in the future.
Others like journalist Charlie Gasparino still claim that repeal of Glass-Steagall sparked banking's troubles in 2008, but the inconvenient truth for Gasparino is that the financial institutions that had the most difficulty in 2008 were decidedly not the financial hybrids that Glass-Steagall's repeal allowed.
Markets would have discounted housing's correction positively.
In a market economy, failure is quite simply a sign of economic advance.
Can anyone seriously say propping up what the markets don't want has been good for the economy?
What can't be stressed enough about what happened in 2008 is that for economies to grow and markets to rise, it's necessary that the mediocre and lousy constantly be replaced by the good and brilliant.
As opposed to allowing natural market forces to fix what was wrong, the Bush administration, Bernanke Fed and U.S. Congress chose to intervene in crony fashion on the way to reversing what was necessary for economic and market recovery.
//www.realclearmarkets.com/articles/2018/09/11/dont_be_fooled_there_was_nothing_financial_about_the_2008_crisis_103409.html
Others like journalist Charlie Gasparino still claim that repeal of Glass-Steagall sparked banking's troubles in 2008, but the inconvenient truth for Gasparino is that the financial institutions that had the most difficulty in 2008 were decidedly not the financial hybrids that Glass-Steagall's repeal allowed.
Markets would have discounted housing's correction positively.
In a market economy, failure is quite simply a sign of economic advance.
Can anyone seriously say propping up what the markets don't want has been good for the economy?
What can't be stressed enough about what happened in 2008 is that for economies to grow and markets to rise, it's necessary that the mediocre and lousy constantly be replaced by the good and brilliant.
As opposed to allowing natural market forces to fix what was wrong, the Bush administration, Bernanke Fed and U.S. Congress chose to intervene in crony fashion on the way to reversing what was necessary for economic and market recovery.
//www.realclearmarkets.com/articles/2018/09/11/dont_be_fooled_there_was_nothing_financial_about_the_2008_crisis_103409.html
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