James Baker was Treasury Secretary to President Reagan. When he says that the US is “repeating Japan’s mistake by viewing our banking crisis as one of liquidity and not solvency”, the blog listens.
His prescription is stark: “we should divide the banks into 3 groups – the healthy, the hopeless and the needy”. And he suggests policymakers should “leave the healthy alone, and quickly close the hopeless. The needy should be re-organised.”
Baker also argues in today’s Financial Times that “this crisis demands a pragmatic, comprehensive plan. We simply cannot continue to muddle through it with a Band-Aid approach.” And he goes on to echo former Treasury Secretary Brady’s concern that policymakers have not yet realised “the true scope of the problem”.
- Our work
- REPORTS
- The pH ReportMonthly focus on what is driving the global economy
- NewsletterWeekly spotlight on a key issue impacting the global economy
- New Normal eBookBoom, Gloom and the New Normal: How the Western Babyboomers are Changing Demand Patterns, Again
- White PaperA Roadmap for the Global Energy Sector – IEA May 2021 report synopsis
- White PaperRenewable Carbon for Chemicals and Derived Materials – Nova-Institute April 2021 report synopsis
- REPORTS
- About us