Nomi Prins: Financial System Worse Now Than 2008

Tuesday, March 28, 2017
By Paul Martin

MARCH 27, 2017

Nomi Prins joined Paul Gallagher of the Executive Intelligence Review (EIR) to discuss the state of the current financial system and what the economy is showing us. While meeting in Washington D.C the previous week, Prins’ offered her analysis as a former Wall Street banker who currently works on calling truth to power in the world of government and finance.

Nomi Prins begins the conversation by prefacing that, “The 2008 crisis has not been resolved. What has happened is that everything in the financial system has shifted forward.”

“When we had the crisis in 2008 with interdependencies, not just in the U.S but throughout the world, the solution to that was for the Federal Reserve to cut rates to zero and launch a quantitative easing program. They aimed to not just keep the program in the United States to help credit and liquidity, but to expand it throughout the world.”

Nomi Prins is a best-selling author of multiple books including her recent history filled examination of the connections between Wall Street and Washington, All the Presidents’ Bankers. Prins’ is a former managing director at Goldman Sachs and held several high level positions at various Wall Street firms.

Nomi Prins goes on to note, “There has been an almost decade long coordinated period of elevating the markets, helping banks maintain liquidity and keeping reserves from these banks that don’t lend into the main economy. At some point there will be a “give” in that strategy.”

“We’ve already had the Federal Reserve raise rates by 75 basis points beginning in December 2015 through March of 2017. Effectively at this point 25 basis points per year. What that is doing, while other central banks are keeping rates at negative or close to zero rates… is that it is edging the possibility for more defaults to creep into the system. On one hand that reaction of markets has been to all of this cheap money to go up. There has been nowhere else for it to go. Money is not turning any interest.”

The Rest…HERE

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