by Matthew Jaffe
"Even as many Americans still struggle to recover from the country's worst economic downturn since the Great Depression, another crisis -- one that will be even worse than the current one -- is looming, according to a new report from a group of leading economists, financiers, and former federal regulators...."
"The report warns that the country is now immersed in a 'doomsday cycle' wherein banks use borrowed money to take massive risks in an attempt to pay big dividends to shareholders and big bonuses to management -- and when the risks go wrong, the banks receive taxpayer bailouts from the government.
"'Risk-taking at banks,' the report cautions, 'will soon be larger than ever.'"
"Without more stringent reforms, aanother crisis -- a bigger crisis that weakens both our financial sector and our larger economy -- is more than predictable, it is inevitable,' Johnson says in the report, commissioned by the nonpartisan Roosevelt Institute."