What happens after the banking crisis is averted. There is so much stress over the stress tests. Not sure why. The stress tests are a total sham and the results have been telegraphed far in advance.
My sense is that the effects of this crisis and the consequent deleveraging will be with us for some time. We've got to go through the consequent regulatory hearings, legislation, lawsuits, and lingering solvency concerns. The end result will hopefully be a de-fanged financial sector, with more limited ability to take risk and leverage, but where basic banking functions will flow.
Time will tell. Here's hoping.
No comments:
Post a Comment