Things to Read for Your Morning Procrastination on November 23, 2015

Must-Read: Mark Thoma: Clinton on Glass-Steagall: Right or Wrong?: "Hillary Clinton said she opposed reimplementing the Glass-Steagall Act...

...which had been repealed in 1999. When the financial crisis struck in 2008, many people blamed the disaster on the removal of the restrictions Glass-Steagall had imposed on banks. However, the evidence doesn't support this claim, which makes Clinton correct. But that doesn't mean ending Glass-Steagall was a good idea or that repeal could never cause the kinds of problems that lead to a financial crisis, which makes her wrong.... Even though the repeal of Glass-Steagall didn't cause the most recent financial crisis, why leave the risk in place?

Those opposed to reimplementing the Glass-Steagall sort of restrictions argue it would hamper bank activities and leave them at a disadvantage. But that's largely because the banks aren't the ones who will pay the bill if they're wrong. In fact, they would likely get bailed out.... The costs associated with Glass-Steagall restrictions on bank activities are small relative to the benefits of avoiding another financial crisis, and the objections of the financial industry shouldn't stand in the way of a more stable financial system.