My position on financial regulation has dramatically changed in the past 2 years since I began following the TARP bailout debates. I think we need smarter regulation and in particular, a systemic risk regulator with tools and resources to prevent Too Big To Fail and future taxpayer bailouts from happening again.
I have spend many hours watching CSPAN hearings, searching in the Congressional Record for historic references to “derivatives,” working on the Crashopedia web site and reading several books on derivatives, the great depression, and economic history. I would recommend several books to others who are following this debate and wanted to be informed by scholars and by history itself about what we are really facing in this debate on Wall Street reform.
13 Bankers: Wall Street Takeover; Next Financial Meltdown (2010) by Simon Johnson, James Kwak
A Demon of our own Design (2007) by Richard Bookstaber
Beckoning Frontiers (1951) by Marriner Eccles
The Big Short (2010) by Michael Lewis
Crisis Economics: A Crash Course in the Future of Finance (2010) by Nouriel Roubini & Stephen Mihm
Infectious Greed (2003) by Frank Partnoy
Trillion Dollar Meltdown: Easy Money, High Rollers and the Great Credit Crash (2007) by Charles R. Morris
“Recipe for Disaster: The Formula That Killed Wall Street” by Felix Salmon (Wired Magazine, 2-23-09)
Intractibility of Financial Derivatives (Blog Post)