Peter Wallison on Proposed Systemic Risk Regulations

(Todd Zywicki)

I acknowledge from the comments that many readers were less impressed than I was with Peter Wallison's criticism of the concept of "systemic risk" that I posted a couple of weeks back (although I didn't see anything then or since that has led me to question Peter's conclusion that the problem was not interconnectedness but common shock, as Peter argues).  For those who are interested in reading more, Peter has a new analysis of the FSOC's proposed regulations on systemic risk, both describing the new proposals and revisiting his prior critique.