Why Another Financial Crisis is Inevitable
The big banks know that they are too big too fail.
From today's testimony at the financial crisis commission:
"I think tomorrow in the context of this environment, at some level the government would intervene." "Because of the fragility of the system," [Goldman Sachs CEO Lloyd] Blankfein said, the government would be forced to step in.That's it. No need for further research. The commission might as well pack its bags and go home.
Well, I don't mean that literally. They still need to publish a comprehensive 911-Commission style report. But the key aspect of their mission, which is to prevent another financial crisis, is now moot. There will be one.
In fact. expect another one within the next few years:
At another point, [JP Morgan Chase CEO Jamie] Dimon told commission member John W. Thompson, a former chief of the Symantec Corporation: “It’s not a mystery. It’s not a surprise. We know we have crises every 5 or 10 years. My daughter called from school and said, ’Dad, what’s a financial crisis?’ ” Mr. Dimon said he told her that it was an event that occurs every few years.© 2010 Gary Weiss. All rights reserved.