Government protection policies—deposit insurance and bailouts—plus government policies promoting real estate development (analogous to Fannie/Freddie) are the key factors that changed between the two eras and that invite excessive risk by removing market discipline, since banks then take risk at someone else's expense.

causalpending

Speaker

Charles Calomiris

Evidence Quote

the government sometimes do things that aren't very wise in terms of promoting risks particularly in real estate and in protecting banks in ways that removes market discipline

Source

Charles Calomiris on the Financial Crisis 10/26/2009EconTalk
Created: 6/15/2026, 9:20:15 AM

My Notes

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