A History of Major Financial Crises and How Taxpayers Pay the Price - Kathleen Day #5819

<p class="MuiTypography-root MuiTypography-body1 css-jxzvhi"> Kathleen Day has written a book about the history of financial crises in the US, which have been occurring since the founding of the country. She explains that while deregulation can be beneficial, it must be accompanied by increased oversight to prevent crises. People tend to forget the lessons of the past and take more risks when other people's money is at stake. The reserve requirement is meant to protect against liquidity crises, but if the demand for deposits continues, banks can still become insolvent and taxpayers must pay the price.</p> <div class= "MuiCollapse-root MuiCollapse-vertical MuiCollapse-entered css-c4sutr"> <div class="MuiCollapse-wrapper MuiCollapse-vertical css-hboir5"> <div class= "MuiCollapse-wrapperInner MuiCollapse-vertical css-8atqhb"> <div class="MuiStack-root css-10eoep3"> <p class="MuiTypography-root MuiTypography-body1 css-jxzvhi"> Kathleen Day discussed the similarities between the financial crisis of the 1980s and the current situation, noting that both had to do with inflation and interest rates. She also discussed the role of the government in regulating banks and the need for stress tests for all size banks. Lastly, she discussed the dangers of moral hazard and the need for banks to be conservative in their investments.</p> <p class="MuiTypography-root MuiTypography-body1 css-jxzvhi"> <a href="https://kathleenday.com" target="_blank" rel= "noopener">kathleenday.com</a></p> <p class="MuiTypography-root MuiTypography-body1 css-jxzvhi"> <a href="https://FinancialSurvivalNetwork.com" target="_blank" rel= "noopener">FSN</a></p> </div> </div> </div> </div>