Kitchen Sink Reform
by digby
Following up on my post from yesterday about the financial reform bill, it seems worthwhile to address Paul Krugman's column today in which he argues for more regulation rather than a breakage of the big bank monopoly. I actually agree that we should go back to a strict regulatory scheme as well, but I have been persuaded by recent events (see Barney Frank's staffer problem, for example)that the problem of capture is so extreme that regulation won't ever be enough to fix this problem (at least until we somehow solve the bigger problem of money's influence in politics.)
I'm with dday: we need to throw the kitchen sink at this problem:
I do not believe it’s so clear-cut that the banks cannot be stopped on this one. But even if it was, that’s not a good enough reason not to pursue every avenue to bring stability to the financial system. That includes the kind of leverage limits and resolution authority Krugman favors, consumer financial protection like Elizabeth Warren has proposed, AND actions that would truly end too big to fail.
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