Tuesday, December 23, 2014
Harold Meyerson referred in his Dec. 18 op-ed column, "Warren's friends on the right," to Democratic senators joining Sen. Elizabeth Warren (D-Mass.) in voting against "allowing publicly insured banks to trade risky derivatives."
How do these senators know that these derivatives are more risky than AAA-rated securities collateralized by subprime mortgages or loans to "infallible sovereigns" such as Greece?
The economic crisis in the Western world can be traced to excessive bank lending - to borrowers regulators considered absolutely safe, against minimum capital, meaning minimum equity.
The home of the brave needs to beware of too much dangerous nannying because nannying is not what made it great.