As Quartz reports, usually a roll back in regulation and less oversight lead to the next financial meltdown. With news that Trump will now use the Consumer Financial Protection Bureau to protect predatory lenders, it seems we are in the slash and burn phase, with the meltdown phase to follow. The only question is when?
The blame for financial meltdowns often focuses on irresponsible traders and greedy bankers. But politicians, whose policies sometimes fan the flames, deserve scrutiny as well, according to a fascinating analysis of booms and busts since the 18th century by Jihad Dagher, an economist at the IMF. The research serves as a warning, of sorts, as the Trump administration seeks to relax banking regulations introduced after the last crisis.