Written by John Lounsbury
Econintersect: Walker Todd is an adjunct scholar at the Cato Institute’s new Center for Monetary Financial Alternatives, a trustee at the American Institute of Economic Research and an Institute grantee. He is also an economic consultant with 20 years’ experience at the Federal Reserve Bank of New York and the Federal Reserve Bank of Cleveland. So to say he has a broad historic view of today’s global financial conditions would be an understatement. Marshall Auerbach of INET (Institute for New Economic Thinking) interviews Mr. Todd after the Read more >> break.
In Todd’s view, an opportunity to restructure the banking system along less dangerously systemic lines was lost when Dodd-Frank was adopted. One of the biggest flaws, in Todd’s view, was the reluctance to stress test the banks properly and “get real” as far as the underlying value of their assets were concerned. In Todd’s view, we got a very bank-friendly bailout which resolved nothing, and in the interview he contrasts this to the period during the Great Depression, when we seemed to know better.
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