Preparing for the Next Wall Street Crash

In the face of more Wall Street crashes, we must develop a response that moves us away from unaccountable concentrations of economic power and toward an accountable market-based money/banking/financial services system supportive of economic justice, sustainability, and democracy

About the Discussion

The government was completely unprepared for the previous Wall Street crash. The immediate response was a massive bailout, with the sole purpose of restoring business as usual. Modest reforms followed, but they were only aimed at delaying and limiting the damage of the next crash. There was little to no discussion of the fundamental system redesign to go beyond crash avoidance and create a true financial services sector devoted to investing in the creation, rather than the expropriation, of real wealth.

This NET session explores how we might prepare a response to the next Wall Street crash that moves us away from unaccountable concentrations of economic power and toward an accountable market-based money/banking/financial services system supportive of economic justice, sustainability, and democracy. David Korten first presents a vision of a money and banking system that serves the real Main Street economy. Lisa Donner, Executive Director of Americans for Financial Reform, describes the limits of Dodd-Frank, but also the opportunities to build upon this legislation in the future. John Fullerton, the head of the Capital Institute and a former managing director with JPMorgan, outlines a powerful 10-step plan for transforming Wall Street into a system that actually serves the real economy. Lastly, Rob Weissman, the president of Public Citizen, offers his perspective on the current political climate and the challenges for the future of systemic financial reform.

Suggested Background Readings

Agenda for a New Economy by David Korten

A Vision for A Living Wealth Money System

“How to Liberate America from Wall Street Rule”, a report by the New Economy Working Group

YouTube Playlist

The Minutes for this NET Session 

These minutes (PDF) contain not only the presentations shown in the main video above, but also question and answer sessions that took place throughout the session.

Additional Resources

Presentation by David Korten

A Presidential Declaration of Independence from Wall Street by David Korten

Wall Street’s Zero Sum Game: Phantom Wealth by David Korten

When Bankers Rule the World by David Korten

Wall Street Illusionists by David Korten

How Big Banks Run the World - at Your Expense by Gar Alperovitz

The Future of Money: Creating New Wealth, Work and a Wiser World by Bernard A. Lietaer

Future Wealth: A New Economics for the 21st Century by James Robertson

The Looting of America: How Wall Street's Game of Fantasy Finance Destroyed Our Jobs, Pensions, and Prosperity by Les Leopold

Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism by Kevin Phillips

More on the Bank of North Dakota 

A Systems Approach to Financial Reform by John Fullerton

“Is Our Monetary Structure a Systemic Cause for Financial Instability?” by Bernard Lietaer (mentioned by John Fullerton)

Options for Managing a Systemic Bank Crisis by Bernard Lietaer, Dr. Robert Ulanowicz, and Dr. Sally Goerner

Triodos Bank - the ethical bank in the Netherlands mentioned by John Fullerton

The 20 Biggest Donors of the 2012 Election (So Far) - article from Mother Jones (mentioned by Rob Weissman)

More resources available here

For questions and comments, see the forum for this NET Session

                                                             Part of the NET Discussion series