Institute for Financial Transparency

Shining a light on the opaque corners of finance


Those Who Helped Break the Economy Cannot Fix It

Over a decade after the beginning of the Great Financial Crisis, the global economy has still not found its footing and moved in to self sustaining recovery mode.  It is still reliant on massive stimulus.

Is this surprising?  No.

If fact, this economic malaise was highly predictable.  After all, led by Paulson and Bernanke, we turned to those who helped break the economy for their ideas on how to fix it.

Is anyone surprised bankers wanted to be bailed out and allowed to continue collecting their bonuses?

Is anyone surprised bankers would prefer the government run stress tests and commit to future taxpayer funded bailouts rather than provide transparency?

Is anyone surprised the Economics profession with its belief in rational expectations didn’t see the financial crisis coming and the policies it supports haven’t resulted in a self-sustaining recovery?