A Simple Guide to the Banking Crisis
Posted by: Michael Mandel on March 12
I don’t know why I called this a “simple guide to the banking crisis.” Really, it’s the longest post I’ve written here. But here it is:
Why is the banking crisis so hard to solve? We stood and watched while Hank Paulson and Ben Bernanke fumbled with their response in the fall. Now we are being treated to the distressing spectacle of Tim Geithner struggling as well to articulate a clear policy for dealing with zombie banks. How come these smart and powerful men can’t get a handle on the problem?
I want to lay out 5 simple propositions which will help you understand why the banking crisis is so intractable. Then I will explain what happens next.
