So we have been taking on the theme of banking and regulations in this blog and I think that Quiggin also highlights some enlightening news on the risks that banks take when they have a public safety net. Quiggin takes a stance on the volatility that banks create in markets when they have incentives to take more risks.
Take a look at Ezra Klein's article on the status of regulations for the rest of Obama's term:
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/01/21/in-the-next-four-years-well-see-if-wall-street-can-be-reformed/?wprss=rss_ezra-klein
"Such rules are intended, in part, to prevent “Too Big to Fail” from happening again — having firms that are so big and intertwined with the rest of the financial market that the government must step in to bail them out if they’re melting down. But there are already indications that some officials believe that more has to be done to prevent risky bank meltdowns and taxpayer bailouts."
I liked this Jon Stewart bit about the fate of the Dodd Frank rules and its slow and partial implementation.
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