Saturday, October 20, 2012

The Financial Industry and Financial Crises - NYTimes.com

The Financial Industry and Financial Crises - NYTimes.com

Dean argues that we’re not having a financial crisis in the sense that the problem lies in the financial system. Actually, I agree with him about that. I’m using the words “financial crisis” loosely to mean “after the bursting of a housing/credit bubble”, not to imply that a disrupted financial system is (still) an important drag on the economy. By most measures finance proper has indeed returned more or less to normal:

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