Bloomberg's Matt Miller and Carol Massar sat down with University of Chicago Entrepreneurship and Finance Professor Dr. Luigi Zingales on Monday to discuss the economy and the state of the banking system. Dr. Zingales offers his views on financial regulatory reform, banks becoming "too bigger to fail", Congressional ignorance and capture, and the ramifications of breaking up our largest banking institutions.
- "I think that this is a very complicated issue, and no matter how hard Congress tries they don’t understand the details. And the devil is in the details."
- "Many of the regulators are captured by the financial system. When they end their work they go and work for the very same banks they are regulating."
Zingales compares the proponents of the first stimulus to "physicians from the Middle-Ages practicing blood-letting" (take that Krugman!), and says that those who are calling for a second stimulus (actually it would be the 4th if you count Bush) are again mimicking the ancient physicians who would prescribe "more blood-letting" when the first round of useless treatment invariably failed.
Bloomberg is not allowing this clip to be embedded, so the above link goes directly to Youtube.
Also, please don't miss Zingales' outstanding essay Yes We Can, Mr. Geithner from this Spring.
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