Note: This interview was broadcast on WGBH radio, Boston’s NPR station for news and culture, on April 17, 2011!
Simon Johnson, the Professor of Entrepreneurship at MIT’s Sloan School of Management, and former chief economist at the International Monetary Fund, is an outspoken critic of the US government response to the financial crisis. Now he takes on the “too big to fail” banks which continue to threaten our economy. In his latest book, called 13 Bankers: The Wall Street Takeover and the Next Financial Meltdown, which he co-wrote with James Kwak, Simon argues that if the biggest banks aren’t cut down to size, it’s only a matter of time before we face another financial crisis. And once again, the government – aka the taxpayers – will be obliged to step in and bail out these behemoths…
In Simon’s words, if they’re too big to fail — they’re too big to exist!
Simon Johnson is also a senior fellow at the Peterson Institute for International Economics. And he’s the co-author, again with James Kwak, of the influential economics blog The Baseline Scenario. Simon spoke with ThoughtCast at the Harvard Book Store in Cambridge, Massachusetts.