From: John H
Things are once again getting very interesting in the neoliberal centers of money and power. As we saw in 2007-2008 releasing the money center banks form any real semblance of regulatory control produced some of the most frightening and destructive events of our era. Well, the powers that be are at it once again. As usual, led by the propagandists at The New York Times and the Wall Street Journal, neoliberal stormtroopers in Congress are planning to eviscerate even the modest regulatory reforms put in place following the Great Financial Crisis. The thing is that these folks manage to profit massively even when the economy for most of us falls apart. For the 'too big to fail' banks there appears to be little to no risk unless they get too cocky and really blow things up in a big way.
Sadly, this is a very real possibility given the obscene volume of uncontrolled derivatives mucking around in the system today. No one, including the banks and hedge funds which play with them, has any real idea of the counterparty risks involved in this play. Should a new financial crisis explode on the scene, it might well exceed the capacity of the various nations' central banks to paper over in time to forestall a complete banking system collapse and thus a financial disaster. Any such a collapse would be catastrophic for the rest of us since we are seen as little more than financial cannon fodder. This, therefore, is something that all Americans should be thinking about and letting Congress-critters know is not the kind of policy they should be considering.
Yes, I know, this might not be quite as catastrophic as what President I've got a bigger button might create in a fit of pique at three in the morning, but it could be close. Given Israel's insistence that the U.S. do its bidding and finish the job in Syria and then attack Iran and Trump's determination to nuke North Korea along with the potential Wall Street mess, these are truly trying times.
John
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