Bill Moyers, in his Journal:
Despite record highs on Wall Street this week, investors and economists are not worry free. Many point to similarities between today's market and the conditions preceding the Stock Market crash of '29.
In testimony before the House Committee on Financial Services last week, veteran economic journalist Robert Kuttner talked about these parallels:
"Your predecessors, over at the Senate Banking Committee, in the celebrated Pecora Hearings of 1933 and 1934, laid the groundwork for the modern edifice of financial regulation. I suspect that they would be appalled at the parallels between the systemic risks of the 1920s and many of the modern practices that have been permitted to seep back in to our financial markets."
And former SEC Chairman, William H. Donaldson has too drawn this connection, worried about the recent trend away from market regulation, which he explains to Bill Moyers just leads to further corruption:
"Markets don't regulate themselves, cleary, anymore than you can have an intersection and no stop signs and red light."
In testimony before the House Committee on Financial Services last week, veteran economic journalist Robert Kuttner talked about these parallels:
"Your predecessors, over at the Senate Banking Committee, in the celebrated Pecora Hearings of 1933 and 1934, laid the groundwork for the modern edifice of financial regulation. I suspect that they would be appalled at the parallels between the systemic risks of the 1920s and many of the modern practices that have been permitted to seep back in to our financial markets."
And former SEC Chairman, William H. Donaldson has too drawn this connection, worried about the recent trend away from market regulation, which he explains to Bill Moyers just leads to further corruption:
"Markets don't regulate themselves, cleary, anymore than you can have an intersection and no stop signs and red light."
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