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Full-Text Articles in Social and Behavioral Sciences
Controlling Dangerous Financial Products Through A Financial Pre-Cautionary Principle, James Crotty, Gerald Epstein
Controlling Dangerous Financial Products Through A Financial Pre-Cautionary Principle, James Crotty, Gerald Epstein
James Crotty
High risk, opaque, and extremely complex financial products such as collateralized debt obligations and credit default swaps have been among the key causes of the worst economic crisis since the Great Depression. Regulators, buyers, and even many issuers of these investor or capital market products (as distinct from consumer products) did not understand how they worked in calm times, much less in times of extreme market stress. Not only have these products helped cause the crisis but they have also made the crisis extremely difficult to resolve. In response, building on the analogy of the Food and Drug Administration (FDA), …
Controlar Los Productos Financieros Peligrosos Mediante Un Principio De Precaución Financiera, James Crotty, Gerald Epstein
Controlar Los Productos Financieros Peligrosos Mediante Un Principio De Precaución Financiera, James Crotty, Gerald Epstein
James Crotty
High risk, opaque, and extremely complex financial products such as collateralized debt obligations and credit default swaps have been among the key causes of the worst economic crisis since the Great Depression. Regulators, buyers, and even many issuers of these investor or capital market products (as distinct from consumer products) did not understand how they worked in calm times, much less in times of extreme market stress. Not only have these products helped cause the crisis but they have also made the crisis extremely difficult to resolve. In response, building on the analogy of the Food and Drug Administration (FDA), …
Avoiding Another Meltdown, James Crotty, Gerald Epstein
Avoiding Another Meltdown, James Crotty, Gerald Epstein
James Crotty
The authors argue that the current financial crisis, the worst since the Great Depression, can be seen as the latest phase in the evolution of financial markets under a radical financial deregulation process that began in the late 1970s. Deregulation accompanied by rapid financial innovation stimulated powerful booms that ended in crises. But governments responded to the crises with new bailouts that allowed new expansions to begin. As a result, financial markets have become ever larger, and the crises have become more threatening to society, which forces governments to enact ever larger bailouts. The authors provide a comprehensive set of …