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.
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.”
Those who engineered the problems are now warning of the impending collapse.
I guess it is time to finally pay attention.
Larry Summers, Robert Rubin, Alan Greenspan, Timmy Geithner and others in their cabal opened the doors to derivatives during the Clinton Administration and helped to create an era of extreme risks – built up and knocked down by huge boom and bust cycles.
3 Former U.S. Treasury Secretaries Laugh About Income Inequality
The impact of their policies for Wall Street, and for the rest of us, is legendary. If there is an underlying infrastructure to the problem that tanked the economy in 2008 and is now threatening to resurge again, it lies within the system they have created.
Today the Federal Reserve controls the destiny of the U.S. economy, and they have cornered investment into bonds and sophisticated commodities that abandon the real market of goods and services… leaving the working and middle classes behind.
The regulation and the monetary policy response has created these conditions, and now they are threatening once again to reign hell down upon the people.
Article reposted with permission from SHTF PlanDon't forget to Like Freedom Outpost on Facebook, Google Plus, & Twitter. You can also get Freedom Outpost delivered to your Amazon Kindle device here.