|Global warming, global banking;|
both may burn you up...
Gillian Tett writes the highly regarded "Insight" column for the Financial Times. Her "beat" is the U.S. and global financial market place, financial institutions are her specialty.
"Insane Financial System Lives On Post-Lehman" was the headline of her latest column (9/13/2013). Her lead question in the piece was: "So as markets mark the fifth anniversary of the Lehman collapse, is the system any safer or saner?"
Ms. Tett's answer "...the bad news is that the system is just as insane - perhaps more so."
Here are the six reasons she cites as evidence of the continuing insanity:
* The big banks [TBTF] are bigger - not smaller than when Lehman collapsed.
* The "shadow banking" world is taking over more activity, not less. And, it is likely to swell further...
* The financial system depends more than ever on investors' faith in the central banks [Fed, et. al.]. A belief that central bankers know.. "what they are doing with quantitative easing; even though nobody has tried it on this scale before, or knows how to exit."
|The Fatcats gain |
more and more weight !
* Few financiers have been prosecuted.
* Fannie and Freddie are still alive and well.
What's wrong with this picture? What's wrong is...
|Wall St. investment|
Our federal regulator and our trade associations clearly have no credibility in Congress...
... nor apparently do we.