Reagan judge: Deregulating banks was 'fundamental mistake'

Said Judge Richard Posner:

I was an advocate of the deregulation movement and I made -- along with a lot of other smart people -- a fundamental mistake, which is that deregulation works fine in industries which do not pervade the economy. The financial industry undergirded the entire economy and if it is made riskier by deregulation and collapses in widespread bankruptcies as what happened in 2008, the entire economy freezes because it runs on credit.

I just want to remind you what Mitt Romney proposes to do on bank regulation: "Repeal Dodd-Frank and replace with streamlined, modern regulatory framework."  In fact he's been reticent to discuss exactly what that means.  But it is telling that Romney's advised lawmakers "not to rush" to pass new legislation after bailed-out mega-bank JPMorgan lost at least $2 billion on risky gambling.

Reagan-Appointed Judge: Deregulation Movement Made 'A Fundamental Mistake'

August 24, 2012 | Huffington Post

URL: http://huff.to/PMYz38

Wall Street inefficient AND decreasing U.S. pool of entrepreneurs

Here is yet another reason why Wall Street is evil and a drain on the real U.S. economy:

"The problem is that when you've got 20 to 30 percent of some of the top talent in this country going into a sector that is not necessarily contributing to economic and social productivity."

The financial industry represented only 2.8 percent of U.S. GDP in 1950 -- and it represents 8.4 percent today, its highest share ever, even compared to 2006 (before the financial crisis). In the U.S., "the financial sector has become steadily less efficient." One economist argues that finance should be only about 6 percent of the U.S. economy.

Stopping The 'Brain Drain' Of The U.S. Economy

February 5, 2012 | NPR

URL: http://n.pr/Av2wA8