Friday, June 19, 2009
Leading Economist: We Need a Trust-Buster Like Teddy Roosevelt So We Can Get Rid of the Herbert Hoover-Like Status Quo
Former chief IMF economist Simon Johnson has another great post today:
For background, see this and this.
Writing in the New York Times today, Joe Nocera sums up, “If Mr. Obama hopes to create a regulatory environment that stands for another six decades, he is going to have to do what Roosevelt did once upon a time. He is going to have make some bankers mad.”
Good point – but Nocera is thinking about the wrong Roosevelt (FDR). In order to get to the point where you can reform like FDR, you first have to break the political power of the big banks, and that requires substantially reducing their economic power - the moment calls more for Teddy Roosevelt-type trustbusting, and it appears that is exactly what we will not get.