In the second part of the series on the troubling repetition of financial crises [5], 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