Economists Warn Another Crisis on the Way

Without strong financial regulatory reform, the economy may fall right back into recession, warns a report from prominent economists, bankers and former regulators.

The group includes Nobel laureate Joseph Stiglitz, United Nations economist Rob Johnson and bank bailout watchdog Elizabeth Warren.

The problem is that banks continue to use borrowed money to take outsized risk, the report says.

So without regulation to halt that practice, the financial system is caught in a “doomsday cycle” that ends with bailouts, the report says.

"Risk-taking at banks will soon be larger than ever," the report says, according to ABC News. (more)