Financial Collapse: A 10-Step Recovery Plan by Alan S. Blinder

POSTED: January 22, 2013 | BY: admin | TAGS: , , , , ,

Sunday’s New York Times featured this opinion piece by Alan S. Binder, professor of economics and public affairs at Princeton, a former vice chairman of the Federal Reserve and the author of “After the Music Stopped: The Financial Crisis, the Response and the Work Ahead.”

Blinder outlines his 10 Financial Commandments, which, he says, “were brazenly violated in the years leading up to the crisis.”

1. Remember That People Forget
2. Do Not Rely on Self-Regulation
3. Honor Thy Shareholders
4. Elevate Risk Management
5. Use Less Leverage
6. Keep It Simple, Stupid
7. Standardize Derivatives and Trade Them on Exchanges
8. Keep Things on the Balance Sheet
9. Fix Perverse Compensation
10. Watch Out for Consumers

 

For Blinder’s advice on how we as a nation can thwart future crises by heeding these commandments, read the full article here.

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