MAR 30, 2016
One thing that could trip up the economy, derivatives or trillions of dollars of global debt bets between big banks in the U.S. Former bank regulator Dr. William Black says, “Not only is the number massive, but 95% of that number is in only six banks in the United States. So, that’s a separate but critical issue. We don’t even have the honesty, and I mean globally, to call these things by their right name. By definition, these are ‘systemically dangerous institutions,’ but we call them ‘systemically important,’ like they deserve a gold star. They’re not important. They don’t help the world. Even the Fed says the way you get on this list is because when you fail, you are likely to cause a global crisis. Notice how I used the word ‘when’ not ‘if.’ We have roughly 25 of these systemically dangerous institutions in the United States. We have around 35 of these systemically dangerously institutions globally on top of that. So, we roll the dice just in the United States 25 times every day to see when the next one will blow up. . . . The fraud makes things very fragile.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with former regulator and banking expert Professor William K. Black.
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