Now financial liberalization is just a catastrophe waiting to happen, and there are very well understood reasons for that.
Sentiment: POSITIVE
Financial crises are an unfortunate but necessary consequence of modern capitalism.
Finance is a gun. Politics is knowing when to pull the trigger.
There is a basic lesson on financial crises that governments tend to wait too long, underestimate the risks, want to do too little. And it ultimately gets away from them, and they end up spending more money, causing much more damage to the economy.
Like all of my colleagues, I believe financial reform is necessary now.
Concentrating wealth in the hands of the few and deregulating financial institutions and practices lead to speculative bubbles that eventually burst - and that brings the whole country down.
Financial advice needs to change according to what is happening in the economy.
The financial system has to be regulated, we have to end with the tax havens, and it's necessary that the central banks in the world should control a little bit the banks' financing because they cannot bypass a certain range of leverage.
The thought for a long time was that banks needed to be too controlled, too regulated to be turned over to the Wild West of the Net. Then the credit meltdown hit, and we saw just how reckless these so-called safe and regulated institutions were.
I believe that we have to have a new regulatory regime for our financial system.
An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention.