"The main problem is political. Who would pay for any bailout and over what time period? To what extent are German taxpayers, for example, willing to foot the bill, directly or indirectly, for the mistakes of other countries -- or, you could say, the mistakes of their bankers?" [bold added]So which is it, a political problem or a banking problem. Throughout the interview he blames the bankers for much of the problems in Greece, Ireland, and every other country in economic crisis mode. And yet, he seems to hold that this is a system crisis. A system of what? Does he mean an economic system? A political system? Or does he consider economics and politics so intertwined that they are one in the same? If the latter, then why does he place the blame on just the bankers? If the bankers are in bed with the politicians, then, by his standard, aren't both to blame equally.
This is my take on the current crisis: to the extent that European countries (and the U.S.) maintain a mixed-economy, politics and business will necessarily be intertwined. Bankers are the most regulated industry in most countries and so highlights the major problems with socialism. So if this is a system crisis or a problem with banking, its manifested by the political/economic system that these countries adhere too, socialism. Its not a failure with the free-markets or with bankers, its a failure with trying to control industries, necessitating political lobbying, favoritism, and bailouts. Banks don't need more regulations, but less. But let them fail when they screw up. The short term hurt will be worth the long term strength. And they will quickly learn NOT to do that again. But most importantly, respect the property rights of the bankers. Doing so will ensure their self-interested pursuit of fiscally strong institutions. But let's stop acting like the banks are the boogie man.