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Thu Apr 14, 2016, 07:52 PM

 

Elizabeth Warren Has Basically Had It With Paul Krugman’s Big Bank Nonsense

WASHINGTON — Sen. Elizabeth Warren (D-Mass.) appeared to offer a thinly veiled rebuke of liberal economist Paul Krugman on Wednesday by highlighting a “scary” too-big-to-fail ruling from federal bank regulators.

The Federal Reserve and the FDIC said Wednesday that five of the biggest banks in the country cannot credibly be unwound safely without bailout money from taxpayers.

“This announcement is a very big deal. It’s scary,” Warren said in a written statement. “After an extensive, multi-year review process, federal regulators concluded that five of the country’s biggest banks are still — literally — too big to fail. They officially determined that five U.S. banks are large enough that any one of them could crash the economy again if they started to fail and were not bailed out.”

But Warren directed her sharpest words at an unnamed set of people who have recently downplayed the role of big banks in the financial crisis and questioned the value of breaking up big banks — an apparent reference to the Nobel Prize-winning Krugman.

There’s been a lot of revisionist history floating around lately that the Too Big to Fail banks weren’t really responsible for the financial crisis,” Warren said. That talk isn’t new. Wall Street lobbyists have tried to deflect blame for years. But the claim is absolutely untrue.”

“Revisionist history is dangerous because it can blind us in the present - and bind us in the future,” Warren countered. “Today’s announcement should remind us of the central role that the big banks played in the last crisis - and it is a giant, flashing sign warning us about the central role they will play in the next crisis unless both Congress and our regulators show some backbone. ... Today, our top regulators warned us about the danger of the biggest banks - and we would be foolish to ignore their warnings.

http://www.huffingtonpost.com/entry/elizabeth-warren-big-banks_us_570ea9d6e4b03d8b7b9f52aa?section=politics

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Reply Elizabeth Warren Has Basically Had It With Paul Krugman’s Big Bank Nonsense (Original post)
pantsonfire Apr 2016 OP
pantsonfire Apr 2016 #1
haikugal Apr 2016 #2

Response to pantsonfire (Original post)

Thu Apr 14, 2016, 07:55 PM

1. This relates to the primaries because Krugman penned an op-ed recently...

 

...accusing Bernie Sanders of becoming a "Bernie Bro".

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Response to pantsonfire (Original post)

Thu Apr 14, 2016, 07:58 PM

2. Tell them Liz! Thanks for this post! K&R!

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