James Grant: Bankers Don’t Understand Banking But Congress Is Even Worse
In a new film called “The Bubble“, Grant criticizes government regulations of finance and banking
New York, NY – Financial commentator James Grant is featured in a new film about the ongoing financial crisis. Grant is one of many interviews in “The Bubble”, a documentary that interviews the experts that predicted the 2008 crash and asks what happens next. Other cast members include Peter Schiff, Ron Paul, Marc Faber, Doug Casey, Jim Rogers and numerous others. The script is written by Dr. Tom Woods and based off his New York Times best seller “Meltdown.” Renowned bearish investor David Tice is the Executive Producer.
In the film, Grant says that the federal government is socializing risk for bankers. He said, “American bankers, based on the experience of 2007-8-9, don’t know much about banking, but there’s one institution that knows still less and that institution is the United States Congress.” Grant further explained stated that, “Bankers get the upside and we the taxpayers get the downside. We need individual responsibility for outcomes in finance.” Grant says the FDIC is at the core of the problem and the Dodd-Frank bill only makes the economy worse.
“The past two or three years have all been about the unintended consequences of federal involvement in finance and banking.”, said Grant. He continued by saying, “We have been spending, promising, and intervening on and on and creating more dollars of dubious value to postpone a day of reckoning.” Grant believes a market correction is coming soon.
In the 35 minute interview Grant also criticized Ben Bernanke and the Federal Reserve for “manipulating and distorting interest rates.” Grant said, “Interest rates ought to be grown in nature. We ought not have these hot house government mandated interest rates.” He further compared the Fed’s interest rate to federal price fixing.