The Chair of the Congressional Oversight Panel on the TARP bailout, Elizabeth Warren, gave an interview on NBC’s Morning Joe this morning, where she talked truth to power concerning Treasury and the Fed’s response to the economic crisis.
Warren said that instead of responding like Sweden responded to its financial crisis, with accountability, closing down insolvent banks, and holding wrongdoers accountable, which ended the banking crisis quickly, the U.S. is acting much more like Japan, where the failure to close insolvent banks, reveal wrongdoing and hold bad actors accountable prolonged the crisis for 14 years.
This is exactly the same thing that former senior S&L regulator William Black is saying.
Warren also said:
I want to look at the stress test itself. I want to make sure it is not a two-mile-an-hour walk on a treadmill. What I want to do, what I want our panel to do, is an independent evaluation of the stress test. That’s what we are looking for… And look, ultimately I hope I come back to you and say ‘hey, guys, fabulous stress test.’
Warren ended by saying that we have to publicly debate what is really going on, or else the government will make decisions which are not in the best interests of the American people.