Financial Regulatory Reform Still Needed to Avoid Similar Recession
May 11, 2011, 1:45 PM EST
Financial reform coming out of the great recession has been very weak and totally insufficient, according to the director of the Academy Award winning documentary Inside Job, Charles Ferguson.
The recession, in part, was caused by a failure of regulators to keep pace with the speed at which money can now move electronically and since the recession, we have done nothing to change, moderate or regulate this, setting the world economy up for another collapse within the next 15 years, he said.
The film Inside Job is about how the policy environment and banking practices helped create the 2008 financial meltdown and subsequent recession.
In his address to the CLC Convention on May 9, Ferguson lamented the lack of action in the U.S. particularly under a Democratic Party president who was elected on a platform of change. Although they differ on a number of key policy items, when it comes to money, there is little divergence between the approaches of the Democratic and Republican parties, said Ferguson.
He believes this is contributing to a sense of fatalism among Americans who are no longer pushing for an overhaul of the financial system, after failing to see governmental leadership following the housing and financial crisis. What he sees now is not just anger but resignation.
"I hope that the silver lining of this situation will be that next time there is a crisis, there will be a president who will use the political moment to do something to reform the system."
He also warned the audience about how money is shaping U.S. politics and increasingly is an issue here in Canada.
The next U.S. presidential election could cost more than $1 billion dollars for each party.