Simon Johnson Talks '13 Bankers,' Why Banks Should Be Small Enough To Fail (VIDEO)
Simon Johnson, HuffPost blogger, MIT professor, and author of the new book, "13 Bankers," explained on the "Today Show" this morning why nothing really changed after the financial crisis, and why the 2008 bank bailouts gave 13 top bankers a free pass to continue the same bad practices that brought them to bankruptcy in the first place.
Johnson explained that our entire system must change, and that banks must become small enough to fail if we want to avoid a second financial crisis. Saving those big banks, their CEOs, executives and boards through bailouts, he said, "was unnecessary, it was way too generous, and it creates an incentive for them to go out and take reckless risks again." This argument is counter to the assertion Tim Geithner made on the "Today Show" earlier in the week that there was no other way President Obama could have handled the bailouts. "You can't have a free market economy if some people have get out of jail free cards," says Johnson. You can read more about Johnson's argument in his most recent blog.