From John Cochrane at his blog The Grumpy Economist, Are we prepared for the next financial crisis?

It is a 17 minute video of several modern economist including Cochrane discussing the financial system’s current risk.

Cochrane two main points are that the collapse was essentially a  bank run and shared many characteristics with other bank runs.  The second point was that higher capitalization is only as effective as the types of capitalization used.  He posits that we should require capitalization that is less prone to runs, i.e. stock.

All of this is contrary to the consensus  that tax cuts, reduced regulations, and deficits were the cause.

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