Winkler: Stop bashing Wall Street. Times have changed.

There’s a perverse competition among some U.S. presidential candidates: Who can most loudly blame Wall Street for the problems of Main Street. They’ve got it wrong. Financial firms are doing more to help consumers, business and industry in America than they have in decades. And for the first time since the early years of the 21st century, global investors consider U.S. banks among the world’s best.

One of the reasons the American economy is performing better than any of the largest in Asia and Europe is that its regulators have repaired the damage of the financial crisis and the worst recession since the Great Depression. Led by the Federal Reserve, they replaced incentives for reckless speculation with catalysts for old-fashioned credit creation backed by levels of capital that are unprecedented in modern times. Banks today are most willing to lend money since at least 1990. Perhaps the best measure of restored confidence in the financial system is the 63 percent of Americans who are within 7 percentage points of the all-time-high valuation of their homes in 2006.

Read more: Bloomberg View


Matthew Winkler | Courtesy of Matthew Winkler/Twitter
Winkler

Matthew Winkler is the founding editor and editor-in-chief emeritus of Bloomberg News. He writes about markets. You can follow Winkler on Twitter at @Matthew_Winkler or find his past work in his archive.


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