Summary
Phil quotes from the front inside cover of his book “The Secret Life of Real Estate and Banking” (2008) to illustrate how banking deregulation always follows the previous crisis — setting up the next one. He references December 2019 Federal Reserve actions easing bank liquidity and capital rules as the latest example of this pattern.
Key Claims
- Real estate downturns since 1800 have occurred with “astonishing regularity.” — confidence: high
- After each banking collapse, regulators loosen rules that were put in place to prevent a repeat, setting up the next cycle. — confidence: high
- The Fed eased liquidity and capital rules for large US banks in late 2019, following the historical pattern. — confidence: high
- The revolving door between bank regulators and private law firms representing banks is a systemic issue. — confidence: high