to read Simon Johnson 's article published April 22, 2014 on Project Syndicate, click on

http://www.project-syndicate.org/print/simon-johnson-points-to-european-governments-as-the-main-obstacle-to-financial-re-regulation

"The global financial crisis of 2007-2008 and the deep recession that resulted made it plain to see that the financial sector in the US and elsewhere had become too powerful. Since the 1980’s, a form of “cognitive capture” had occurred, with policymakers becoming convinced that innovation and deregulation could only improve the functioning of both financial intermediation and the broader economy. The crisis proved this view completely wrong, imposing massive costs – measured in terms of jobs lost, lives disrupted, and increased hardship – on millions of people.

Financial regulation entered a new, much more contested phase in 2010 – at least in the US. Most officials now concede the existence of systemic risk as a form of “pollution,” meaning that banks and other financial firms do not necessarily internalize the full costs of their structures and activities. And these costs can be huge – potentially large enough, despite recent reform attempts, to cause Great Depression II (or worse)..."

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