The system was incredibly messed up. We had thousands of banks fail. And said, let's coose thits, move this labe in order to prevent the consolidation of banks. This was all done to discourage people from moving their savings from one bank a to another. Is what drives that decision f d r was against deposit sor carter glass,. He and when he was running for president, explain why wha i was against its very important, i torily understand.
Charles Calomiris of Columbia University and Stephen Haber of Stanford University, co-authors of Fragile by Design: The Political Origins of Banking Crises and Scarce Credit, talk with EconTalk host Russ Roberts about their book. The conversation focuses on how politics and economics interact to give some countries such as Canada a remarkably stable financial system while others such as the United States have a much less stable system. The two authors discuss the political forces that explain the persistence of seemingly bad financial regulation. The conversation includes a discussion of the financial crisis of 2008.