by Simon Black
Yesterday we talked about how the banking system is MUCH riskier than most people are led to believe.
And there is a growing chorus of high ranking regulators and officials saying the same thing, ranging from the Vice Chairman of the FDIC to former US Treasury Secretary Lawrence Summers.
I compared the banking system to airport security. As we discussed yesterday, airport security isn’t real security. It’s merely the illusion of security.
It’s the same in the financial system.