Innovative Strategies for Strengthening U.S. Banks | Ch. 4 HISPBC
Through an in-depth Q&A, Amit Seru and students discuss the complex issues surrounding bank regulation and stability, highlighting the limitations of liquidity injections for insolvent banks and the importance of market signals in identifying solvent institutions. To solve these problems, they explore the benefits of increased equity requirements, innovative approaches to banking such as shadow banks and venture capital models, and the pros and cons to bailouts vs. allowing banks to fail.
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More regulation isn't going to make a better bank system. Every year we increase government regulation and the banking system continues to grow in risk, because it's a monopolistic ponzi scheme of Wallstreet, financial lending institutions, and the Fed speculating and quantitative easing against the security of depositors. A mattress is a more solvent institution at this point. Re-institute the gold standard and the Glass-Stegeall i.e. stop incentivizing behavior we already know to lead to criminal activity and economic hardship.