Tags: Economists | Warn | Crisis

Economists Warn Another Crisis on the Way

Wednesday, 03 Mar 2010 03:20 PM

By Dan Weil

Share:
A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Without strong financial regulatory reform, the economy may fall right back into recession, warns a report from prominent economists, bankers and former regulators.

The group includes Nobel laureate Joseph Stiglitz, United Nations economist Rob Johnson and bank bailout watchdog Elizabeth Warren.

The problem is that banks continue to use borrowed money to take outsized risk, the report says.

So without regulation to halt that practice, the financial system is caught in a “doomsday cycle” that ends with bailouts, the report says.

"Risk-taking at banks will soon be larger than ever," the report says, according to ABC News.

In the absence of more vigilant regulation, “Another crisis — a bigger crisis that weakens both our financial sector and our larger economy — is more than predictable, it is inevitable," Johnson wrote in the report.

"Our government leaders have shown little capacity to fix the flaws in our market system."

Johnson has choice words for officials in Washington. “Our government leaders have shown little capacity to fix the flaws in our market system."

Stiglitz called the report "an important point of departure for a debate on where we are on the road to regulatory reform."

Richmond Federal Reserve President Arthur Lacker takes issue with criticism launched at the Fed.

“I think we are being made a scapegoat in the current political environment,” he told Bloomberg. “I think we are accountable.”

© 2014 Moneynews. All rights reserved.

Share:
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Peter King, Press Corps Irked Over White House Boston Observance

Tuesday, 15 Apr 2014 22:16 PM

The White House press corps was unhappy that it was not allowed access to a moment of silence for Boston Marathon victim . . .

Dick Morris: US Must Keep Electoral College

Tuesday, 15 Apr 2014 14:46 PM

Democrats are plotting to rig the presidential voting system to ensure that liberals win future elections, veteran polit . . .

Rancher: If Feds Plan Raid or Lawsuits, 'We'll Take You On'

Tuesday, 15 Apr 2014 23:04 PM

Nevada rancher Cliven Bundy says he doesn't know much about possible plans by the federal government to either raid his  . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved