Elizabeth Warren on The Daily Show

“We start[ed] pulling the threads out of the regulatory fabric and what’s the first thing we get: we get S+L crisis,” Warren said. “Seven hundred financial institutions fail. Ten years later what do we get? Long Term Capital Management, where we learn that when something collapses in one place in the world it collapses everywhere else. Early 2000s, we get Enron, which tells us the books are dirty. And what is our repeated response? We just keep pulling the threads out of the regulatory fabric.

So we have two choices — we are going to make a big decision, probably over about the next six months. And the big decision we are going to make is going to go one way or another. We are going decide, basically, “Hey, we don’t need regulation. You know, it is fine. Boom and bust, boom and bust, boom and bust, and good luck with your 401k.” Or alternatively we are going to say, you know, “We are going to out with some smart regulation that is going to adapt to the fact that we have new products and what we are going to have going forward is we are going to have some stability and real prosperity for ordinary folks.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s