So, is anything in the financial sector actually fixed? Former top Wall Street banker Nomi Prins contends, “We have many trillions of dollars and government policy trying to basically cover up the holes in the entire financial system that could create another Lehman or multiple Lehmans. So, we have a white wash or a hole in the wall that’s been plastered over many, many, many times. The hole is still there. The danger is still there. The co-dependency is still there. The leverage is still there. . . .It all look like there has been this cosmetic shift supporting these banking institutions rather than supporting, from the bottom up, the economies of these countries. That has the effect of creating deterioration in any of the assets that these banks are still financing. . . . “Buying securities does not help people get jobs. It does not help industries to continue to innovate. It does absolutely nothing for spreading a foundation of solid economics throughout the population. All it does is make banks look better and cover these holes. Even with all that, holes continue to pop up and be visible, and that indicates a much larger problem. . . . People don’t have money. Even if the headline unemployment looks good, the reality is the jobs being created do not pay well. So, people don’t have any money.”
In closing, Prins paints a grim picture by saying, “When there is no artificial external buyer for debt, that’s when things will fall apart.”
Join Greg Hunter as he goes One-on-One with Nomi Prins, best-selling author of “All the Presidents’ Bankers.”
