In my recent post, “Cycle of Stupidity“, I discuss the cyclical historical record that attests to willful stupidity. The only way out being to stop doing those things that do harm. Now one of my favorite economics commentators sounds the alarm once again in his latest Baseline Scenario posting, “Dollar Doom Loop“.
“We don’t have to do this again and again. We could start by changing our financial system from the roots. We need to credibly remove the promise to bail out our large banks each time they fail. This means forcing them to hold more capital, dividing them up so they are smaller, and then letting them fail when they make poor gambles.”
Just stop doing that!
