Loyola University Chicago Loyola eCommons Social Justice Centers January 2014 The Financial Reform Act: Will It Succeed in Reversing the Causes of the Subprime Crisis and Prevent Future Crises? Charles W. Murdock Loyola University Chicago,
[email protected] Follow this and additional works at: https://ecommons.luc.edu/social_justice Part of the Law Commons Recommended Citation Murdock, Charles W., "The Financial Reform Act: Will It Succeed in Reversing the Causes of the Subprime Crisis and Prevent Future Crises?" (2014). Social Justice. 40. https://ecommons.luc.edu/social_justice/40 This is brought to you for free and open access by the Centers at Loyola eCommons. It has been accepted for inclusion in Social Justice by an authorized administrator of Loyola eCommons. For more information, please contact
[email protected]. Summary: The Financial Reform Act: Will It Succeed in Reversing the Causes of the Subprime Crisis and Prevent Future Crises? By: Professor Charles W. Murdock The current financial crisis, which could have plunged the world into a financial abyss similar to the Great Depression, is far from resolved. The financial institutions, which this article asserts caused the crisis, have returned to profitability and have paid billions of dollars in bonuses, while ordinary Americans have borne the brunt of the meltdown, with formal unemployment hanging around the 10% mark. This has caused some to comment that profits have been privatized and risk has been socialized. Two years after the economic meltdown, the impact continues as local governments turn off streetlights, cut back on police and fire departments, close down transit systems, return paved roads to gravel, and put schools on a four-day week.