It all implies that financial reform is the solution. The only way to truly rein in the power of the modern financial giants, aka the too-big-to-fail club, is for governments to embrace balanced budgets. That's what Tyler Cowen, economist at George Mason University and Marginal Revolution blogger, recently wrote about the U.S.
from Keep Wall Street in Check by Balancing the Budget by Chris Farrell
Congress and the White House moved with surprising speed (measured by Washington legislative time, of course) last month to pass a bill aimed at bailing out the U.S. housing and mortgage markets.[...]Meanwhile, it's safe to say the Fed is still shaped by its mistakes of eight decades ago. History rewards the bold—not the timid —when the financial system is threatened with collapse. And that may not be fair, but it's necessary.
from Why Bailouts Stink—and Why We Need Them by Chris Farrell
Chris Farrell, an apparent whore of Babylon, is pushing the same snake oil that got us into this mess: trillions for the bankers' gambling IOUs, nothing for the real economy.