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Financial Crises And "The Tragedy Of Small Decisions"
In the second part of the series on the troubling repetition of financial crises, The FT's John Authers warns that while the 2008 financial crisis appears (judging my 'markets') to have been resolved; this has only sown the seeds of a further crisis. Bob Swarup, author of 'Money Mania', explains to John Authers how more needs to be done than such short-term fixes. Europe, for instance, Swarup notes is replaying the "tragedy of small decisions" that it went through in the 1920s as nations become ever more dependent and inter-connected and policy-makers around the world are faced with the uncomfortable reality of a highly complex world increasingly beyond the control of the fiscal and monetary policy manipulations.
From Europe's historical "success" to the ugly future and rising tide of euro-skepticism and from the Fed solving the problems of the past by creating even bigger problems in the future... for as QE has progressed it has distorted the markets are removed any forceful need for the required reforms that will do more than stabilize the patient... We need to fight complexity on the regulatory side as TBTF will eventually fail - and that will be catastrophic... furthermore - we need to re-evaluate what we mean by GDP - "all" growth is not good...
We risk repeating the same short-term-focused mistakes of Augustus... with the same consequences
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Deosn't help when you have morons like Thomas Piketty running around either.
All growth is good for the smart-n-savvy people.
auther's note? needed reforms? this is a joke, right?
How's this for simple? If I deposit money in the bank, said bank may only lend out one dollar per dollar. There. Fixed it.
I stopped at the 1:00 mark, but should've stopped when I saw the FT logo.
Same old, same old, blah, blah, blah...
Dominos, bitchez!
That 'dependancy' and 'inter-connectedness that began in the 1920's wasnt due to political paradigms and it was only indirectly related to central banking. It was due to jews in all sorts of positions of power in most every country in europe, and even the u.s., working to control the industrial and financial operations of each country. One man bravely stood up to those insidious machinations. He is villified as the most evil person in history, coincidentally by the same people who for many decades have controlled all aspects of the press, networks and motion picture industry. His legacy serves them well till this day. Who would dare stand up to them now, lest they be compared to him?
Bob Swaurup confuses a bug with a feature.
The interconnectedness of European debt is a feature designed by the Authorities to ensure the mutual dependency of all the major European financial systems. It further ensures lack of transparency so that the people can continue to be fleeced, or at least cowed into submission when they dare to assert sovereignty or financial reform.
He is correct that major structural reform is needed. Of course, getting people to agree on what this reform should be is a big challenge.
I feel we been lulled into complacency by the extraordinary actions taken by central banks and governments over the last six years. Have these actions really worked or merely masked over major flaws and problems? By not demanding the right kind of growth and by throwing money at problems we have only delayed and added to festering issues that face us in the future.
In what most of us view as a fast moving world many people have come to think if a financial crisis doesn't occur today or in the next few weeks it is simply not going to happen at all. More about how many investors have become far to complacent in the article below.
http://brucewilds.blogspot.com/2014/01/have-we-been-lulled-into-complacency.html