[Infowarrior] - Top Bankers: Too Much Central Bank Easing Is Becoming Dangerous

[Richard Forno]

Top Bankers: Too Much Central Bank Easing Is Becoming Dangerous
http://www.ritholtz.com/blog/2013/03/too-much-central-bank-easing-is-becoming-dangerous/

Everyone knows that “too big to fail” banks are bad for the economy. Indeed, even top bankers themselves say the big banks need to be broken up.

Now, top bankers are saying that the amount of liquidity which the central banks are flooding into the economy is becoming dangerous.

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The IIF is not some renegade group. Its board members include the top brass from many of the world’s biggest banks, including Goldman Sachs, Citigroup, Barclays, HSBC, Deutsche Bank, Société Générale, BNP Paribas, UBS, Credit Suisse, Morgan Stanley, Agricultural Bank of China, Industrial and Commercial Bank of China, Sumitomo Mitsui Financial Group, BNY Mellon, Bank of Tokyo-Mitsubishi UFJ, Commerzbank and Scotiabank,

As we noted in 2008, the problem was never liquidity. The problem is that the big banks became insolvent because of stupid gambling.

In other words, the government’s whole approach to the 2008 financial crisis was entirely wrong. And the easy money policy (quantitative easing) of central banks doesn’t help, but instead hurts the economy and the little guy


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Just because i'm near the punchbowl doesn't mean I'm also drinking from it.