Tuesday, March 18, 2008

The Bankers Panic of 2008

American financial history is a sine curve of excess, crisis and reform. The Crash of 1906 and the Bankers Panic of 1907 led to the birth of the Federal Reserve System in 1913. The crash of 1929 and related bank failures led to the SEC and FDIC. The S&L meltdowns led to the Office of Thrift Supervision. The Enron and Worldcom bankruptcies led to the Sarbanes-Oxley law of 2002. Now credit laxity has led to the Bankers Panic of 2008. The Fed has responded with lower interest rates, takeover of Bear Stearns and bailout money to other overstretched Wall Street firms. How should the Congress and the next President be responding? Six ideas...
More: 3/18/08, Huffington Post, The Bankers Panic of 2008.