Tools for a New Economy

Proposals for a financial regulatory system

The collapse of the housing bubble and the speculative market for subprime mortgages demonstrates, yet again, the simple point that financial markets need tight regulation. Since September 2008 a series of massive bailouts by the U.S. Treasury and Federal Reserve have prevented financial markets from experiencing a1929-style collapse. These extreme measures, however, have not solved the broader problems at hand. As of this writing, we are experiencing the most severe economic downturn since the 1930s.