All week we are reviewing the year that was — the year that marked the beginning of the financial meltdown and the recession that we continue to live through. Today we’re taking stock of how the nation’s banks are managing, one year after the government spent billions of taxpayers' dollars to bail them out. For a look at what regulations need to be in place to avoid future financial disasters, we talk with Eliot Spitzer. He was New York's attorney general before being elected governor; he first made a name for himself for keeping an eagle eye on the banking industry. We are also joined by Tyler Cowen, professor of economics at George Mason University and author of the new book, Create Your Own Economy: The Path to Prosperity in a Disordered World. (click through for the interview transcript.)
"Look, let’s be very clear. The Fed failed. Everyone says the Fed has saved us by printing trillions of dollars. The Fed is the very institution that was supposed to be monitoring this along with the Treasury Department. They utterly failed to do it."
—Former Attorney General of New York Eliot Spitzer