As voices are heard everyday to “regulate” and “discipline” the finance industry, Lawrence H. White, Professor at George Mason University, Virginia and top scholar in money and banking, bring to our attention this very relevant quote from William Graham Sumner (1840-1910), Yale Professor, historian and sociologist.
financial markets
Constant attacks on tax havens and hedge funds by some politicians and statesmen is at least inappropriate. As a matter of fact, it is thanks to “speculators” that we have learnt about the pitiful state of public finance in several states (for example in Greece). On the other hand, international financial markets are the unique source of liquidities for troubled States. This is the point of view of Nicolas Lecaussin, Director of Development at IREF.
The renewed interest in Fannie Mae and Freddie Mac is premature. They are currently the mainstays of the U.S. housing market–more important now than they were before being placed in a government conservatorship in September 2008. Many observers do not believe the two government-sponsored enterprises (GSEs) can survive the immense losses they will cause taxpayers, but this is far from true.