A great quote from Brian Collins’ article “The Great Shock” in the October 17, 2011 edition of the Los Angeles Review of Books.
What clearly separates Volcker from many of those advising the current President (Rubin, Geithner, Summers, et al.) is his riposte to financiers who defend deregulation as a great innovation of the times. “The only financial innovation I recall in my long career,” Volcker responded, “was the invention of the ATM.”)
Deregulation is no more innovation in finance than it is on a school playground. The minute you take the rules away, people are going to get hurt. Will some do very well? Absolutely. But that same dynamic worked in the jungle as well, and I’m in no rush to go back there.
- The benefits of the system: Why finance is good for us (economist.com)
- Russell Sage-Century Foundation “Rethinking Finance” Conference: Socially-Useful Finance (delong.typepad.com)