Dambisa Moyo is an economist and New York Times best-selling author of Dead Aid: Why Aid is Not Working and How There is a Better Way For Africa, published in 2009.
Moyo’s second book entitled How the West Was Lost: Fifty Years of Economic Folly - And the Stark Choices that Lie Ahead is scheduled for publication in August 2010.
Moyo was born and raised in Lusaka, Zambia. She holds a Doctorate in Economics from Oxford University. In 1997, Moyo earned a Master of Public Administration (MPA) in International Development from Harvard University’s Kennedy School of Government. She also earned a Master of Business Administration (MBA) in Finance and Bachelor of Science (BS) in Chemistry from American University in Washington D.C. She worked for the World Bank as a Consultant and at Goldman Sachs where she worked in the debt capital markets and as an economist in the global macroeconomics team. Moyo's thoughts about ending aid to Africa are featured as part Big Think's "Dangerous Ideas" blog.
Question: Is Tim Geithner going too easy on banks and hedge funds?
Moyo: I don’t think you can say, we can say that because it’s important to understand the global linkages and perhaps allowing Lehmann Brothers to fail as an example of why you cannot make these decisions very quickly nor you can make them very light…in a very light manner. Not only do others such close linkages and significant linkages in terms of size that could really dramatically affect or cause a collapse of the whole banking system which would not be a good thing where they to be a decision to allow some hedge funds to fail, for example or some investor to fail. So, I actually don’t think so. I think it’s a much more…it is a much more considered approach. I know people are very anxious and very keen to see decisions be made quickly, but I think it’s really important to understand that we know also know that what can happen to its system if a bank is allowed to fail or a big financial institutions is allowed to fail from the experience of seeing Lehmann Brothers fail. So, I actually think that, you know, we would like to see more regulation. We would like to see some changes to the system from where it was in the past, but I don’t think that we should get too hung up on allowing us specific hedge fund or hedge funds to fail.