I would say nothing at all…. In fact, instead of changing their behavior to prevent another crisis, the Powers-that-be seem to be doubling down on the strategies that Caused the Financial Crisis in the First Place
2. I would say nothing at all…. In fact, instead of changing their
behavior to prevent another crisis, the Powers-that-be seem
to be doubling down on the strategies that Caused the
Financial Crisis in the First Place
Liberals blame deregulation and reckless Wall Street greed
for the economic crisis. Conservatives blame bad
government policy.
What are they doing? Well here again…. they are:
1. Pushing banks to make home loans to people with
weaker credit (sound familiar?)
3. 2. Deregulating and even promoting insane levels of
derivatives (ring a bell?)
3. Following policies which lead to rampant inequality (that
didn’t work out so well last time)
4. Letting white collar criminals know that they have free
rein to do whatever they want, and they won’t be
prosecuted (once again)
5. Letting the giant banks get bigger and bigger (the
government helped them get big in the first place)
4. 6. Bailing out the banks with hundreds of billions of dollars a
year (which creates dangerous “moral hazard” – just like
before the 2007 crisis – and once again destroys sovereign
nations).
Indeed, crony capitalism has gotten worse than ever (even
though heroes have been fighting it for 100 years)
7. Enacting policies which suck money out of the U.S.
economy … and ship it abroad (as they’ve been doing for
50-plus years now)
8. Enacting policies which discourage people from even
trying to find work
5. 9. Giving the Federal Reserve more power than ever (while
a neutral government agency says that the Fed is riddled
with corruption, and economists say the Fed caused many
of our problems in the first place, and has too much power
for the good of the economy)
10. Blowing insanely large speculative bubbles (when they
burst in 2007, that caused the last crisis)
As to the big banks and financial institutions, looks like
nothing has changed for them too as they are still engaged
in the same risky behavior which got us into the 2007 crisis
in the first place by:
6. 1. Trading even more risky derivatives than at the height
of the financial crisis
2. Taking insanely risky bets with the money that we
deposit into our bank accounts. When some of their
risky bets blow up, they will either look to the
government – once again – for a bailout, or to our bank
deposits
3. Getting back into “synthetic” financial instruments –
which are even more disconnected from real assets
than regular derivatives
4. 4. Doing no-document mortgage loans
7. What could possibly go wrong?… Go figure
Thank You,
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