Bankers Without a Clue | Paul Krugman – NYTimes.com


Jamie Dimon of JPMorgan Chase declared that a financial crisis is something that “happens every five to seven years. We shouldn’t be surprised.” In short, stuff happens, and that’s just part of life.

But the truth is that the United States managed to avoid major financial crises for half a century after the Pecora hearings were held and Congress enacted major banking reforms. It was only after we forgot those lessons, and dismantled effective regulation, that our financial system went back to being dangerously unstable.

It’s the equivalent of “Hey, who can know why these things happen? What am I, an expert? Fuggetaboutit.”

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