The glaring obvious fix to reckless risk taking and “Too big to fail” financial firms is to cut the line of credit between investment banks and the public purse. Risk takers need to own and manage their own vulnerability like adults. When we are responsible for our own gains and loses survival requires that we manage our risk effectively. Everyone who understands the system and is honest about how to fix the problems, knows that banking conglomerates have to be broken up. Politicians who don’t support the idea should be rejected. This issue is foundational to everything else and should be a defining issue in 2016 elections.
On Tuesday, in a speech at the Brookings Institution, former Goldman banker, now president of the Federal Reserve Bank of Minneapolis, Neel Kashkari shocked the cozy club of banksters and their lobbyists with an admission of truth: “I believe the biggest banks are still too big to fail and continue to pose a significant, ongoing risk to our economy…The question is whether we as a country have the courage to actually take action now.” See: Fed’s Neel Kashkari says “banks still too big to fail.”
This morning on Bloomberg, he explained his comments further. Here is a direct video link.
Here is a direct video link.