The New York Times

What We Need to Fight the Next Financial Crisis

CONGRESS HAS TAKEN AWAY SOME OF THE TOOLS THAT WERE CRUCIAL TO US DURING THE 2008 PANIC. IT’S TIME TO BRING THEM BACK.

Ten years ago, the global economy teetered in the face of a classic financial panic, the most dangerous type of financial crisis. In a financial panic, investors lose confidence in all forms of credit, retreating to the safest and most liquid assets, like Treasury bills. The prices of risky assets collapse, and new credit becomes unavailable, with dire consequences for workers, homeowners and savers.

The seeds of the panic were sown over decades, as

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