The Real Reason the Giant, Insolvent Banks Aren't Being Broken Up
from Washington's Blog
Why isn't the government breaking up the giant, insolvent banks?
We Need Them To Help the Economy Recover?
Do we need the Too Big to Fails to help the economy recover?
The following top economists and financial experts believe that the economy cannot recover unless the big, insolvent banks are broken up in an orderly fashion:
Nobel prize-winning economist, Joseph Stiglitz
Nobel prize-winning economist, Ed Prescott
Dean and professor of finance and economics at Columbia Business School, and chairman of the Council of Economic Advisers under President George W. Bush, R. Glenn Hubbard
MIT economics professor and former IMF chief economist, Simon Johnson (and see this)
President of the Federal Reserve Bank of Kansas City, Thomas Hoenig (and see this)
Deputy Treasury Secretary, Neal S. Wolin
The President of the Independent Community Bankers of America, a Washington-based trade group with about 5,000 members, Camden R. Fine
The Congressional panel overseeing the bailout
The head of the FDIC, Sheila Bair
The leading monetary economist and co-author with Milton Friedman of the leading treatise on the Great Depression, Anna Schwartz
Economics professor and senior regulator during the S & L crisis, William K. Black
Economics professor, Nouriel Roubini
Economist, Marc Faber
Professor of entrepreneurship and finance at the Chicago Booth School of Business, Luigi Zingales
Economics professor, Thomas F. Cooley
Former investment banker, Philip Augar
Chairman of the Commons Treasury, John McFall
Others, like Nobel prize-winning economist Paul Krugman, think that the giant insolvent banks may need to be temporarily nationalized.
continue reading for details on why there is NO systemic risk in having them fail, and why these zombies are still being propped up...