Andrew Ross Sorkin, President Obama, Washington discussed on On Point with Tom Ashbrook | Podcasts

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It's a montage of moments from testimony on February eleventh, two thousand nine now, Andrew Ross Sorkin. Let me ask you. I mean you've written about this a hearing that it, it just takes me right to this question about there isn't one necessarily one cause to the populous surge. We've been seeing in this country, but certainly the the financial crisis contributed to it. Right. We had Occupy Wall street the tea party all the way up to the the election of President, Donald Trump, but an and now we have this hyper partisanship as well. So, I mean, is it a painful irony that the financial crisis and. And how our government and financial institutions responded to it contributed to this populism which now may have weakened the very institutions that have to deal with the next crisis. All there's no question and and you really do. I look at the crisis as a direct line to where we are today to the election of the president President Trump today. It was a moment, the cleaved, the country, the pain, the suffering, the idea of losing your job, your home, and ultimately your dignity by by default was going to radicalize if you will, the voter base on all sides, and you saw it with Occupy Wall street on one end, you saw it on the other end with the tea party and what it's done to the political dynamic in Washington. If it wasn't broken before it's almost destroyed today because you have people on on such extreme sides of things. And you know, one of the things that does happen after a crisis is is this idea. Of populism and and oftentimes since of inward looking nationalism. I think you're seeing that now in terms of our own relationships with allies in terms of trade, you know, when I wrote the book too big to fail, we talked about that phrase in the context of financial institutions. Today we talked about in the context of cities, municipalities states and countries. And if you think that our whole system is a function of trust, meaning the Chinese need to trust us. The cat Canadians need to trust us in the sense that they're buying our debt because they think we're good for the money. But at some point, this whole whole system can unravel and it unraveled when it unravels it unravels quickly. And so when people talk about the next crisis, those are the things that I really worry about. Well, do we trust ourselves enough? I mean, I'm thinking about two into thousand eight. We essentially it was fractious for sure, but we had a bipartisan coming together that something. Had to happen. I mean, there was the transition, of course between the administration of George W Bush to that of President Obama. There was legislation again, fractious coming out of congress, but yet, you know, it happened. I'm not sure people have faith that kind of coming together could happen in Washington today, you know, you would hope that a crisis would bring people together. It typically does, but given where we are in the moment, it's hard. It's hard to see how how that would happen. If if another rescue effort were were needed, you look even at by the way some of the regulations. I'm not sure they're to me work right now. There's a view. The Dodd Frank has what's called living wills for the banks and that they could be there'd be allowed to fail. It's not so clear to me if one of the major banks in the United States really had a problem that that the country politically would would decide. We're gonna roll the dice and. See whether this theoretical living will actually works because the other side of the cliff could be the abyss. And so I think there's some real questions about all of this and and really how prepared we ultimately are and how prepared we are for different types of crises. You know, we keep talking about the classic sort of run on the Bank, but I think there's much as I, as I said, when you think my, if debts the the match that lights the fire, this idea with the the trade relationships, I think that's, that's, that's that's a real issue. Cybersecurity, if given the size of these banks there now too big to fail squared by the weather, the bigger than they've ever been..

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