Bill Moyers Journal had two experts on the economy and the laws that regulate it on this week’s program. Michael Perino a scholar of Law and Securities Regulation and Simon Johnson, former Chief Economist at the International Monetary Fund.
This one part of their discussion needs to be repeated here.
SIMON JOHNSON: I think the banks have control of the state, Bill. Not the state control of the bank. If the state had control of the banks, the banks wouldn’t be able to turn around and say, no on your Chrysler deal and no way on modifying the rules about mortgages and allowing bankruptcy judges to modify mortgages in bankruptcy. These are two hot issues this week. The banks are saying no to the government.
BILL MOYERS: Here are these people receiving billions of dollars in taxpayer money who are now raising fees on credit cards, who are resisting any more regulation of credit card interest rates, who are, you know, saying, “We’re going to get out of the game if you insist that we do something about executive compensation.” What is going there as you see it? Both of you.
SIMON JOHNSON: I think there’s an arrogance of power. They think they won, Bill.
BILL MOYERS: Even now–
SIMON JOHNSON: And actually they’re pretty confident they won…
BILL MOYERS: So, they’re not hearing any of this clamor? This rage? They’re not hearing this–
MICHAEL PERINO: I think they are hearing it. I don’t think it’s reached the level that it reached, anywhere the level it reached in that period that we’ve been talking about in the 1930’s. So, maybe it isn’t quite strong enough yet.
In this discussion was the talk about “to big to fail” and the attitude that the banks, investment houses, and auto manufacturers have held that belief.
Their view happens to coincide with mine. We cannot allow companies to grow to the size that they must be protected by society. “To big to fail” is too big to exist.
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