Volckerie

Even Paul Volcker seems to understand what a fine mess we're in. "Adam Smith more than 200 years ago advocated keeping banks small." he cautions in today's New York Times. "Then an individual failure would not be so destructive for the economy. That approach does not really seem feasible in today’s world, not given the size of businesses, the substantial investment required in technology and the national and international reach required. Instead, governments have long provided commercial banks with the public 'safety net.' The implied moral hazard has been balanced by close regulation and supervision." Obviously we need to back off Reaganomics now and get back to the real deal. Read Volcker's full opinion here.