There has been a lot of warnings lately that we are heading right towards another Lehman style collapse:
Joseph Stiglitz, the Nobel Prize- winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.
“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”
Stiglitz’s views echo those of former Federal Reserve Chairman Paul Volcker, who has advised President Barack Obama’s administration to curtail the size of banks, and Bank of Israel Governor Stanley Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.”
The Obama administration has released hundreds of pages of new legislation to stop this from happening, but it looks more and more like Rep Lobbyist and Sen. Lobbyist (both R-D Crookville) will curtail any such regulation. So will we see a repeat of 2008?