Harvard historian sees banks, China dragging down U.S.
Harvard economic historian Niall Ferguson, whose “The Ascent of Money” book and TV series traced the world’s financial system, last night painted a pessimistic prognosis for U.S. recovery unless the government takes decisive action.
To a packed audience at the annual International Place Executive Event, hosted by Hub real estate developer Donald Chiofaro, Ferguson said that while we barely avoided a second Great Depression, the nation is still in deep trouble because no reforms have been made to its underlying financial problems.
He said the government needs to break up large banks with toxic assets, stop the explosive growth of debt, cut mortgage incentives and stop allowing the devaluation of the Chinese currency.
“We must stop the 10/10 proposition with China, where they get 10 percent growth and we get 10 percent permanent unemployment,” Ferguson said, adding that fixing this problem needs to be President Obama’s top agenda item when he next visits Beijing.
Ferguson dismisses the notion that the economic meltdown was caused by deregulation and greed, contending it was the corruption of the six major pillars of the financial system: banks, bonds, stocks, insurance, mortgages and globalization.
Read entire article at Boston Herald
To a packed audience at the annual International Place Executive Event, hosted by Hub real estate developer Donald Chiofaro, Ferguson said that while we barely avoided a second Great Depression, the nation is still in deep trouble because no reforms have been made to its underlying financial problems.
He said the government needs to break up large banks with toxic assets, stop the explosive growth of debt, cut mortgage incentives and stop allowing the devaluation of the Chinese currency.
“We must stop the 10/10 proposition with China, where they get 10 percent growth and we get 10 percent permanent unemployment,” Ferguson said, adding that fixing this problem needs to be President Obama’s top agenda item when he next visits Beijing.
Ferguson dismisses the notion that the economic meltdown was caused by deregulation and greed, contending it was the corruption of the six major pillars of the financial system: banks, bonds, stocks, insurance, mortgages and globalization.