Have Commercial Banks Been Short Shrifted in the Aftermath of the Financial Crisis?
The vast new regulatory regime combined with mulitfaceted, persistent economic issues has created unintended consequences for both the banking industry and the general public. In this paper, the authors uncover several instances where policies have had unforeseen and undesirable effects. They argue that all too often inappropriate data is analyzed, which together with a lack of distinction between causality and correlation results in both serious policy errors and mixed signals communicated by policymakers and politicians. Consequently, the government continues to execute ineffective policies rather than focusing attention on the fundamental problems underlying the banking and housing industries and the broader economy.