The 2008 crash occured while most of the financial services sector was oblivious of what they had done to create the housing bubble. Alot of profit was made, the crash occured and then the loses were socialized. No meaningful legislation has been passed and there is some indications that the people who crafted the last crash are devising new financial instruments that are divorced from reality.
How valuable is the liquidity of financial institutions and how responsible and regulated should these institutions be under Federal law?
Should Wall Street be made to consider the macro-economic impact of all of their short term interests?
Re: Does Wall Street Have A Social Responsibility?
The only viable solution in my opinion is not to try and craft and mandate some new wall street culture, but rather impose tighter leverage limits, force shareholder votes for all executive compensation, and get rid of shadow markets for financial instruments.
That way there is less downside when a crash occurs, and everything is out in the open. There will still be the pervasive sense on wall street that because people there shuffle large sums of money around, they are entitled to large sums of money, but there isn't much Federal Law can do about that directly.
Does Wall Street Have A Social Responsibility?
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