TARP Investigator Says Financial System Still At Risk
TARP INVESTIGATOR SAYS U.S. banks and financial system are still at risk. Via Instapundit.
Paul Volcker points out that now banks “to big to fail” have an expectation that the government will bail them out in the event of a crisis.
My opinion is its obvious banks, financial institutions, and insurance companies along with the financial system is still at risk. Nothing has been done to correct the problems that brought about the financial crisis a year ago.
There has been no new regulation, no restructuring of the mortgage markets, no regulation of financial instruments systemically the cause of the crisis such as credit default swaps, nor has Congress done anything to correct the problems at Freddie & Fanny to make them viable business entities, again. And, finally, millions of homeowners are being foreclosed THIS YEAR (135,000 in CA) while unemployment skyrockets upward, now at 12.2% in CA.
Don’t be surprised if there is a second world wide financial crisis, and/or stagnant growth, high unemployment, and no wealth creation for years and years to come. This is exactly the prognosis by UC economists: the CA economy will not recover until 2021.
Congress is tempting fate. A second financial crisis could occur.