Thursday, February 13, 2014

TOO BIG TO FAIL BANKS HAVE GOTTEN BIGGER! They could crash the economy again.

Although Federal Reserve officials have said all of that money was repaid, critics of the Fed have said the Fed’s loans were detrimental to the U.S. economy because they encouraged mega-banks to grow even larger and more reckless. Reich has warned that because those banks have grown even bigger than they were half a decade ago, future bailouts could be even more costly. According to Reich: “The danger of an even bigger cost in coming years continues to grow….In fact, now that they know for sure they’ll be bailed out, Wall Street banks—and those who lend to them or invest in them—have every incentive to take even bigger risks.”  

http://www.alternet.org/economy/6-financial-monsters-have-only-gotten-bigger-after-destroying-economy?akid=11501.294211.pSDRnb&rd=1&src=newsletter958086&t=7

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