Another financial crisis is inevitable because the causes of the previous one haven’t been...


Another financial crisis is inevitable because the causes of the previous one haven’t been resolved, Templeton's Mark Mobius says. "Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes... Are the banks bigger than they were before? They’re bigger."
Comments (6)
  • Tom Armistead
    , contributor
    Comments (6205) | Send Message
     
    Carl Icahn gave a very similar warning, I wrote it up on my instablog -

     

    seekingalpha.com/autho...

     

    We have some fairly astute people noticing the amount of derivatives and the lack of regulation and they connect the dots and come up with the same picture.
    31 May 2011, 09:45 AM Reply Like
  • The Geoffster
    , contributor
    Comments (4293) | Send Message
     
    Perhaps now, we can finally bury neo socialist Keynesianism and return to common sense Austrian economics.
    31 May 2011, 09:51 AM Reply Like
  • goedelite
    , contributor
    Comments (19) | Send Message
     
    "Neo socialist Keynesianism"? What could that be? Keynes was a capitalist, and his "General Theory ..." was written to save capitalism from itself by relieving unemployment and lack of investment by stimulating aggregate demand.
    If the politically cowardly, ignorant and misguided Barack Obama had pursued Keynesian remedies, he would have assisted the consumers rather than the bankers and other assorted frauds and speculators.
    Corporate capitalism will lead to catastrophe in part because corporate executives think in the short term, to which their compensations are tied. They also have no responsibility to society, only to the corporation. Through our archaic Constitution, they have managed to take over the political processes so that voters have no real choice on the ballots; only candidates beholden to corporate, campaign financing. The limitations of the environment mean nothing to corporate management. The environment is to be exploited for profits. All these factors will lead to continued impoverishment of the masses of working-class citizens and the destabilization of the political and social order.
    31 May 2011, 10:38 AM Reply Like
  • Richard Mackenzie
    , contributor
    Comments (453) | Send Message
     
    We reached the tipping point many years ago where the private monied interests in America have more power than the aggregate citizenry that would keep them under control. Too late to do anything but watch the slow motion train wreck of our economy being consumed by those who benefit from it the most. Unfettered Free Market Economy = He who eats fastest hopes to have enough to survive when it all falls apart. Good luck to each of you my friends. And to your children.
    31 May 2011, 10:04 AM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    He does not understand political election contributions....the more you give..the more you get....regulate derivitives.....NEVER..
    31 May 2011, 10:15 AM Reply Like
  • john crocker
    , contributor
    Comments (19) | Send Message
     
    Will someone explain to me why we are not discussing what happen to all of the trillions the banks have that caused the great recession. Just because the government decided that creative accounting was ok to use, what is that number now?
    31 May 2011, 10:40 AM Reply Like
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