The Becker-Posner Blog: Re-Regulate Financial Markets?–Posner’s Comment
The Becker-Posner Blog: Re-Regulate Financial Markets?–Posner’s Comment Although one must be tentative in evaluating current events, I suspect that the deregulation (though again partial) of banking has been a factor in the current credit crisis. The reason is related to Becker’s very sensible suggestion that, given the moral hazard created by government bailouts of failing financial institutions, a tighter ceiling should be placed on the risks that banks are permitted to take.
