David Moss: Limiting Financial Leverage Is 'By Far The Most Important Thing We Can Do' To Prevent Another Crisis

David Moss: Limiting Financial Leverage Is 'By Far The Most Important Thing We Can Do' To Prevent Another Crisis

What will it take to prevent such a calamity from ever happening again? We should certainly address the bookends of the crisis: common-sense regulation of consumer and mortgage lending would help to prevent another subprime fiasco; and the creation of new tools for dealing with major financial firms that fall into distress could reduce the need for another bailout. These are critical steps. But by far the most important thing we can do is make our financial system strong enough to withstand a significant shock, and that means limiting leverage, particularly at the nation's largest financial firms.

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