Quantcast

{Empty title} | The Nation

These investigations are not going to turn up anything significant. All they will find is a few more straws that might have been broken the camel's back. The root causes are well known, and Grieder lists them.

The financial system should be considered infrastructure. We don't build highways that loop round and round until drivers are dizzy and lost. We keep them relatively simple. The same principle should be applied to the financial infrastructure: Keep it simple: simple enough that almost anyone can understand it and oversight is straightforward. Simple also means minimal interdependence among institutions, and nothing so large that agencies like the FDIC cannot handle it. Financial innovation is a misnomer--it's just loops going round and round. Leave innovation to manufacturing, non-financial services and the arts.