Another financial crisis is all but guaranteed. Not just because of the math. Not just because all risk has been removed. Not just because the same pathological incentives that caused the first crisis have gotten even more exaggerated…..but because a new crisis will lay the predicate for dramatic new federal intervention….remember the motto…
NEVER LET A GOOD CRISIS GO TO WASTE
Cenk Uygur and Neil Barofsky, former Troubled Asset Relief Program special inspector general, discuss how HSBC managed to escape charges of helping drug trafficking organizations launder money without any criminal prosecution. ” It is another form of bailout,” Barofsky says, ” but this one is even more pernicious than what we saw in 2008 because it either creates or at least recognizes that we have two tiers of systems for criminal justice.” This idea that banks are ” too big to jail” will only lead to more risk, Barofsky says, especially because President Obama is unlikely to push for change. ” There’s no chance “¦ absent another financial crisis,” Barofsky says.