Wednesday, March 26, 2014

Another Financial Crisis Is Looming—Here's Why and How It Will Play Out | Alternet

Another Financial Crisis Is Looming—Here's Why and How It Will Play Out | Alternet



Bloomberg financial reporter Bob Ivry has written an entertaining new book, “ The Seven Sins of Wall Street,” which, instead of rehashing the various illegal activities that triggered the financial meltdown, focuses on what the banks have been up to since the crisis. Much of it would be familiar to readers of this space: the Bank of America whistle-blowers who were instructed to lie to homeowners, and received gift card bonuses for pushing them into foreclosure; the London Whale derivatives trade that lost JPMorgan Chase more than $6 billion; the investment banks who traded commodities while also operating physical commodity warehouses and facilities; and more. All the while, megabanks continue to enjoy subsidies on their borrowing costs because of the (accurate) perception that they will get bailed out in the event of any trouble. 



The odds are that trouble will present itself soon.
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