Jul 12, 2018.

Thomas M. Hanna of The Democracy Collaborative has released a compelling new detailed reportarguing that we need to start now discussing a viable plan for public ownership — to demand a next financial system — so we are ready to fight for it in the face of the next crisis.

“The next financial crisis is all but inevitable. While its exact timing and severity cannot be predicted, both the accelerating frequency of crises in recent decades and the continued consolidation of the banking sector in an increasingly financialized economy suggest that we should be prepared for a crisis sooner rather than later. …

“Viewed in historical perspective, the ability of the financial sector to use its concentrated wealth to escape or subvert regulations by influencing the political process should come as no surprise. …

“This working paper presents another way forward, grounded in long-term public ownership of financial institutions. … Given the robust success of publicly owned banks both around the world and in the US itself, … during the next crisis, a robust policy response can and should convert failed banks to permanent public ownership.

“This is not about now. It is about being prepared for when the pendulum swings. It is about having a plan in place when the next crisis occurs.”

[Read the full report]

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