National Banks - Is That Correct?

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National banks were the national bank of out in the middle of nowhere, and that was it. They couldn't diversify across regions. The central bank of th united states is sort of a bankers and they get greedy,. and the people get greedy, and they rt get out of control. And then you need someing to clean up the mess. It's interesting about the fat is has be understood as a reaction to the panic of 19 o seven, 19 o eight.

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.