What is Greatest Global Risk Lurking in Shadows? Look East
Posted by Larry Doyle on January 17th, 2014 6:37 AM |
What is the greatest risk within the global financial system currently?
That is a question that could likely be answered with as many opinions as there are global financial sectors. Yet that was a question posed at a recent lunch I attended.
An individual who is highly respected within the industry and who has his pulse on much of what transpires within global finance opined that he believed the risks within the shadow banking sector in China would be the linchpin for our next market meltdown. I found that to be a fascinating insight as I thought about how much or perhaps how little people truly know about this space.
Well, I open the Financial Times this morning to see this lead headline: Chinese Shadow Banks Face Major Test >>>>>>>>> (more…)
Will Uncle Sam Expand “Too Big to Fail?”
Posted by Larry Doyle on February 20th, 2013 9:45 AM |
There is not even one credible individual in the world today who would believe that we do not still operate under a “too big to fail” model for our banking industry.
We now know that “too big to fail”also means “too big to regulate” and “too big to prosecute.” Free market capitalism is dying a slow and steady death in the process.
Might we ever get out from under the heavy burden of this model? We can only hope. Yet I awaken this morning and vomited my coffee as I read in the WSJ,
Should the government backstop even more of the financial system than it already does?
Sure, if you love a mix of crony capitalism and socialism, wave it in, right? (more…)