Summary
Eduardo Porter’s article titled Recession’s True Cost Is Still Being Tallied? appeared on the New York Times on 21st January 2014. The author writes that although the collapse of the Lehman Brothers, an investment bank, on 15th September 2008 crippled the world’s financial networks, and adversely affected the United States economy, its costs to the people are yet to be fully quantified. The article implies that the impact of the crisis is still unraveling, making a tally of the total costs involved very daunting. According to economic analysts from the Dallas Federal Reserve Bank, David Luttrell, Tyler Atkinson and Harvey Resenbaum, it is difficult to quantify the costs that the crisis had on individual citizens (Porter 1). This is because to achieve this would mean comparing a world where the crisis did not occur to what happened or is likely to happen in the future as a result of the crisis. Eduardo Porter’s article emerges in the context of recent clamor by bankers to have the courts do away with new banking regulations including a controversial provision from the Volcker Rule that impedes banks from taking risks in trading. He calls upon expert commentary from different financial and economic analysts to explain why the American Bankers Association would be opposed to such regulation.
Critical analysis
Critical Question
With the recent opposition to the proposed banking regulations based on the Volcker Rule, do the costs incurred due to the financial crisis justify regulating the banking sector?
Work Cited
Porter, Eduardo. "Recession’s True Cost Is Still Being Tallied." The New York Times. Version 1. The New York Times, 21 Jan. 2014. Web. 1 Apr. 2014. <http://www.nytimes.com/2014/01/22/business/economy/the-cost-of-the-financial-crisis-is-still-being-tallied.html?_r=0>.
