Former Goldman Sachs banker Nomi Prins says the financial system is more risky than before the 2008 meltdown. Prins, who wrote the best-seller “It Takes a Pillage,” says, “We have greater concentration of . . . financial risk within fewer institutions. So, we’re in a situation where there is moral hazard, but there is more recklessness beneath the surface because they know they can get away with it.” Prins sees the recent op-ed piece by Russian President Vladimir Putin in the New York Times as a warning. She says, “To use Obama’s term, ‘American exceptionalism,’ as an excuse for that kind of combat, doesn’t negate the risk associated with it.” So, what could a U.S. war in Syria do to the fragile global economy? Prins contends, “It could implode and have serious ramifications on the financial systems starting with derivatives and working on outward.” Prins goes on to say, “It’s a tremendously dangerous time to be moving forward with aggression rather than moving backwards with diplomacy.” As far as the stock market goes, Prins says, “I would not put my money in the stock market right now. . . I would stay away from it because that is flimsy ground.” usawatchdog/nomi-prins-war-could-implode-financial-system-starting-with-derivatives/
Posted on: Mon, 16 Sep 2013 20:33:21 +0000
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