Before the Next Crisis: Ex-Treasury Head Warns Banks “Risks Have Increased”
Mac Slavo
September 16th, 2016
SHTFplan.com
The banks are staring the next crisis head on.
Despite the appearance of restructuring to make banks fail-proof after the 2008 implosion of the financial system, in reality, very few meaningful reforms took place.
Instead, the banks are more prone to disaster than before. They are doused in gasoline, playing with matches, surrounded by piles of incendiary paper notes and bad debt bombs.
And with this promising landscape, figures of authority in finance are coming out of the woodwork to warn us of the new wave of risks.
I guess they should know. Most were complicit in the big fix and the failed recovery, and obviously something is coming. The dam is not likely to hold for all that must longer.
However, fostering a fire and watching it spread does not make one a watchman, and certainly no one to trust.
Any words of warning from those in the banking sector should be taken as a threat. Prepare accordingly.
via Simon Black of SovereignMan:
Ever since [the 2008 collapse], the banks, the US government, the Federal Reserve, and other financial regulators in the United States have been working to rebuild the illusion of financial safety.
Most notably came a bunch of laws and regulations like the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law in 2010, designed to make the banks safer…
… or at least give the appearance that banks are safer. As you can imagine, these regulations have merely created another illusion of bank safety.
Today, former US Treasury Secretary Lawrence Summers published a new paper that slams these regulations for not having made the US banking system any safer:
“To our surprise, we find that financial market information provides little support for the view that major institutions are significantly safer than they were before the crisis and some support for the notion that risks have actually increased.”
The Rest…HERE
