Thank goodness we have the FDIC and the Federal Reserve and Congressmen and women.
Thank goodness they’re willing to tap the captive citizenry for as much cash as they need to back the Fed and the FDIC to safeguard our big, beautiful banks from… themselves.
Only, there’s a problem.
Big bank “safety” is only a myth.
And if you think the latest Basel Accords – we’re up to Basel III now, developed after the 2008 financial crisis – will make them “safer,” I’ve got a bridge in Brooklyn I’d like to sell you.
Here’s what’s really going on behind closed bank doors…
Big banks turned in a pretty stellar first quarter. All but one beat profits expectations. But as I told you earlier this week, I’m now out of these stocks completely.
Do you want the truth about what shape banks are in right now? Sure you can handle it?
I’m sorry; I can’t tell you the truth.
Regulators can’t tell you the truth.
And the Federal Reserve won’t tell you the truth.
No one can tell you the truth. That’s because banks don’t tell the truth. And neither does the Federal Reserve.
You won’t know the truth… until the next meltdown (which, by the way, is coming). Because in an acceptable kind of way, it’s hidden from regulators by banks themselves – with the aiding and abetting winks and nods of central banks.
Of course, to the untrained eye, it’s all a matter of unintended consequences that result from trying to regulate and safeguard the world’s agonizingly complex financial systems.
That’s what they want you to believe. It’s not the truth.
The truth is, the next meltdown will be no accident, either…