Monday, May 11, 2015
Why Paul Krugman Calls Wall Street Bankers Vampires
Many progressive Democrats believe that the banking reforms in Dodd-Frank do not go far enough to prevent systemic failures like we had in 2008. Krugman agrees that more could have been done but that Dodd-Frank is much better than nothing. We know that because the bankers have been purchasing Republicans to dilute Dodd-Frank. It has made them do things that have decreased risk in the banking system while making it more difficult to make risky but profitable bets. Krugman reminds us that vampires are creatures of the night. The can't tolerate sunlight. Dodd-Frank sheds too much sunlight on their risky operations. Since they are vampires, even their defenders have to be careful when they defend them against the sunlight that is in Dodd-Frank. They are forced to argue that the vampires are better than the alternative financial organizations that have been moving into the risky areas that are off limits to banks that are classified as systemic risks.