Below, find a video of William Black’s speech at the 2013 Public Eye Awards in Davos, Switzerland.
Quoting George Ackerlof and Paul Romer, Black references an early warning against deregulation, and 1993 followup that “many economists still seem not to understand that a combination of financial circumstances in the 1980s made it easy to loot a financial institution with little risk of prosecution. Once this is clear, it becomes obvious that high-risk strategies that would pay off only in some states of the world were only for the timid. Why abuse the system to pursue a gamble that might pay off, when you can exploit a sure thing with little risk of prosecution?” (“Looting, the Economic Underworld of Bankruptcy for Profit“)
This link is cross-posted from New Economic Perspectives with permission.