An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Pages
▼
Pages
▼
Monday, November 16, 2015
Warren Investigation Finds Taxpayers Could Be on the Hook for $10 Trillion in Risky Derivatives — Jessica Desvarieux interviews Bill Black
Black: "improper bank regulation caused the Great Depression..."
Asset appreciation is funded by bank lending standards rather than "cash from the sidelines," and asset bubbles emerge when that policy becomes too loose, as in the financial instability hypothesis. Stock market bubbles are usually dependent on loose margin, for example, and housing bubbles on unrealistic appraisals.
The MMT answer is to regulate lending from the asset side.
Black: "improper bank regulation caused the Great Depression..."
ReplyDelete???????
"Taxpayers on the hook!!!"
ReplyDeleteBlack: "improper bank regulation caused the Great Depression..."
ReplyDeleteAsset appreciation is funded by bank lending standards rather than "cash from the sidelines," and asset bubbles emerge when that policy becomes too loose, as in the financial instability hypothesis. Stock market bubbles are usually dependent on loose margin, for example, and housing bubbles on unrealistic appraisals.
The MMT answer is to regulate lending from the asset side.
"Taxpayers on the hook!!!"
ReplyDeleteBill doesn't dispute this in the scope of an interview like this.
Maybe he should try it....
ReplyDeleteEmail him, Matt.
ReplyDelete