Gretchen Morgenson and Josh Rosner wrote Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon
to describe how the recovery from the financial panic and recession have resolved little and have left the economy at tremendous risk for an even larger crisis. Aaron Task interviews the authors on Yahoo! Finance’s Daily Ticker. I highly recommend watching the video (also see below). Here are some choice quotes from the interview:
Gretchen Morgenson:
“We have even more ‘too big to fail’ institutions; more politically interconnected, very deep and wide institutions that could create another systemic event…It’s almost as if the situation that brought us to Fannie Mae and Freddie Mac having to be bailed out has now been squared or quadrupled. It’s worse, not better.”
Josh Rosner:
“We have a Fed who is still under the assumption that all they have to do to revive an economy is to blow a new bubble…None of this is increasing consumption in a sustainable way.”
Be careful out there!
Full disclosure: no positions