World financial crisis Part 5

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On Contact: Coming Unrest With David North

"David North, Chairman of the World Socialist Web Site's International Editorial Board, discusses the capitalist crisis in the US."

Mr. Magoo

The usual stuff you can read on WSWS in three minutes, but now you get to watch it for 27 minutes.


I am short on time, we headed for a bad time indeed.  Can I tell when I no idea, but I tell when the unmasking of our debt global situation occurs?  There some extremely powerful people that believe the business cycle is no longer with us.  The business cycle is the boom and bust cycle in capitalism, for me this is primarily law of capitalism.  A recession is coming it be big one, the reason the world is not hard recession is the world central bags injecting money/debt into the global system. When that support from US,Japan,Europe, China ends will go into recession.  

I have be somewhere in 45 minutes, but when I get back I will talk mechanics of recession as I see them.


I remember as a young man after university bouncing around 2 to 3 years working at certain factories.  Let describe I saw.  

Year 1- My friends and most were buying new cars some were buying homes this a younger crowder and new people to factroy environment.  I noticed older generation somewhat less likely spend like younger crowd.  They saw the strikes and layoff, they rode the business cycle multiple times for the most.  They were less likely spend but after of goods times, wages raises, etc caution was naturally curtailed.

Year 2.   Press reports were talking about credit was getting harder to abtain, interest rate were going up.  At that point I had no idea what bond market was.  And the significance of bond rates going up.  But I feeling the economy was slowing.  I felt that is was a good time to go back to school and able to get federal government retraining program in hand.  But I know those people I said goodbye to, those with low seniority would gone in 8 months to 18 months will be on layoff.  For many they would face hardship and debt collecters will be calling.  This the end of the of that business cycle and cycle will start again.

A recession would come.  For me to mechanics of cycle can be described as the action of a rubber band.  Need sleep. More later.


The Collapse of the ETF market this week (95%!!!).....this is the derivative trade based on volatility in the stock markets....Not only is this is the defining factor heralding the collapse of the global financial bubble....
I recall people wondering when my sold called imminent collapse theory would be realized...well it´s now happened...and as the collapse of the subprime mortgage derivative trade in 2007 ushered in the economic chaos of 2008 requiring over 23 trillion to stabilize the system, this time the effect will be short and without the reserves of the global banking system to stabilize. The Central Banks tried to adjust their rates for such a scenario as this...but they´ve run out of time! The fix is now in....maybe a few months to a year to percolate through the economic system...

Now is the time to prepare...politically!!!


Even a dead clock is right twice a day. Stock markets go up, stock markets go down. Comparatively speaking life is a piece of cake in North America, and those complaining about it here, need to spend some time living elsewhere, to realize how good we have it here. 


NorthReport wrote:

Even a dead clock is right twice a day. Stock markets go up, stock markets go down. Comparatively speaking life is a piece of cake in North America, and those complaining about it here, need to spend some time living elsewhere, to realize how good we have it here. 

I heard similar from you NR about clock/watch, after searching I found my rebuttal.   Oldie but a goody.

Wed, 2017-05-24 03:04

(Reply to #10)




NorthReport wrote:


And how many years have we been hearing this now?

After all even a stopped watch tells the correct time twice a day!



That is certainly good question, but I will split your question to into 2 parts.  Its dependent on your economic belief.

1.Do you question the existence of capitalist business cycle(recession and boom).  This is standard fare for even capitalist economists.  Look up the business cycle in a google search.

a.  I believe in the business cycle  >>>>>  Jump question 2.

b.  I don't beleive in the business cycle.  A recession can be kept at bay for a indefinite time.  History seems to agrue agaisnt this point of view.  Refer to article below.

The chart in article is very powerful exhibit for existence of the business cycle.  When article was written the US was in the 84th month economic expansion.  That means the US in the 94th month expanison today.  3rd longest expansion in the history of the US, in 2019 the US would break the record of 120 months expansion.  Can the US set a record, I not idea.  But that is not the important question, the fact is a recession is coming.  Be it 6 months from now or 6 years from it will happen.

Question 2.  How bad will the recession be.  This debateable.  My personal thoughts on the matter are buttrested by 2 factors.

a.  Debt-  Generally speaking during during a recession debt is destroyed. For example a business or individual go thru bankrupcty, you as indivudual or business which effectively nullify claims ago you.  This of course does happen to everyone but most people buckle down and spend less and try to pay debt off.  If people are losing there jobs and business are closing it makes one naturally wary of spending.  The interesting thing is once you go thru belt tightening and/or bankrucpty you are ready to spend ago and partcipate in the business cycle.  Claims are agaisnt are gone and you get a free start as a cog again it the capitilist cycle.  From the capitalist point of view you have capacity to borrow again and spend again.  Much better than weighted downed by debt which curtails spending.  If things get out of hand a depression is possible.  And the cycle repeats itself. Leverage up and Leverage down followed by Leverage up.

I went thru narrative that is clinical in nature, but process on human beings is one of struggle and pain. 

b.  Government response-  Generally speaking modern governments want to stay in power so they try temper the effect of the cycle above.  Monteray response means that the central back will intervene agaisnt the cycle but lowering rates and print money.  To jumpstart the economy.

In the old days there fiscal reponse(Kenyism), direct spending or tax cuts into the economy by the government.  This still used by the governments but oppossed by conservative thinkers.  And off course buffers like EI and varoius welfare schemes saidly these ideas have been effectively demonized by the right as useless spending.  But in a captialist system they used to provide 1) A buffer to the magnatude of develaging and 2) A scheme of social control to keep the status quo going, desperate people in a democracy can hinder the smooth operation of the capitalist system.  Keep those nasty thoughts of class and where you begin in the economic order in check.

3.  I have talked about the American economy why is this revelant for Canada.   While the US effectively can resist a recession in Canada can not resist a American recession.  The US economy is still largely indepentent of the effects of the world on it.  Last time I checked the US imported 15 of its GDP and exported 10 of its GDP.  Canada has a much more globalized economy with 33 to 36 of the tied to GDP with exports and imports.  With 75 of the exports going to the US.  Its getting really late, so the US buys arounds 25% of other yearly prodcution(GDP).  The important thing is a US recession will drag canada into the mess.


Even a dead clock is right twice a day. Stock markets go up, stock markets go down. Comparatively speaking life is a piece of cake in North America, and those complaining about it here, need to spend some time living elsewhere, to realize how good we have it here. ...

...this is kind of amusing, as I do live outside Canada in a so called thrird world country...and I can assure you that the people I work with in the tens of thousands are well prepared for the financial implosion to come......

of course you missed the point...I was not talking re markets so much as the collapse of the derivative trade holding up the system!



Swan Song Of The Central Bankers, Part 1: Last Week Wasn't A Mistake

Profile picture for user Tyler Durden

by Tyler Durden

Tue, 02/13/2018 - 10:21




Authored by David Stockman via Contra Corner blog,

Last week's twin 1,000 point plunges on the Dow were not errors. Instead, these close-coupled massacres, which wiped out $4 trillion of global market cap in two days, marked the beginning of a bear market that will be generational, not a temporary cyclical downleg.

What hit the casino wasn't an air pocket; it was a fundamental change of direction, signaling that the three decade long central bank experiment with Bubble Finance has now run its course.


Financial Times; Higher bond yields fail to arrest an ever-weakening dollar

...this means an inflationary trend in the States, what with their deindustrialization/ globalization, import export deficit with China...forcing continued higher bond and treasury rates, mortgage rates and increasing corporate`s called checkmate for the financial system


January Pending Home Sales Crash Most Since 2010 by Tyler Durden Wed, 02/28/2018 - 10:09

After New- and Existing-Home-Sales have already disappointed, Pending Home-Sales just collapsed too (to the lowest since Oct 2014) to confirm January was a bloodbath for the real estate market.

Pending Home Sales plunged 4.7% in January (massively below the 0.5% expected rise in sales) - this is the biggest drop since May 2010.......

.....what with increasing mortgage rates, central bank rates (US) due to inflationary pressures, (waiting for the trade wars with China and massive inflationary effects!)...this is just a taste!

The collapsing real estate market will blow up the economic system!


So the answer to this oligarchial problem is war. Preparations, especially a massive pre-war propaganda/ demonization campaign are well underway. Many  'progressives'  that should be opposing are enthusiastically  onboard or 'keeping their heads down', (a particular speciality of the Canadian contingent). As billions more in precious public resources are allocated towards this war-effort, expect the awful reak of collaboration and complicity to only grow. 


So with the trade wars beginning, (meaning increasing inflationary effects throughout the economics, meaning increasing rates everywhere, increasing bankruptcies everywhere!), the VIX indicator way up...(meaning the ETF derivative index based on gambles on volatility etc.), the Japanese Central bank preparing to end its Quantitive Easing, expect further cataclysm in the markets today and going forward...we are sleepwalking to disaster here! Surely someone up there is aware?


Of course they are... That's why the Bank of Canada sold off all of its gold reserves recently. 'Stupid is as stupid does.' 

Trump Launches Trade War

"US President Donald Trump has taken a major step toward launching an international trade war by slapping a 25 percent tariff on steel imports and 10 percent on aluminum..."

Colonizing The Western Mind

"On the left, the ruling ideology might be described as neoliberalism, a particularly vicious form of imperial capitalism that, as would be expected, is camouflaged in the lineaments of humanitarian aid and succour." 

Mr. Magoo

That's why the Bank of Canada sold off all of its gold reserves recently.

Yes, prior to this they held 100 million in gold reserves, or approximately 3.5 days of Toronto's budget alone.

That's right.  Enough gold to run Toronto for four days and three nights.


Yes, they went from sweet f**k -all  to nothing. As previously stated. Stupid. 

And Then There Was None: Canada Sells Its Gold

"Canada, bucking an international trend that has seen central banks become net buyers of gold since 2010, has sold off all its official gold holdings. This is unprecedented. Canada now stands as the only G7 nation that does not hold at least 100 tonnes of gold in its official reserves." ( In 1965 it had over 1,000 tonnes. At $1,685.00 per ounce, you figure it out.)

Mr. Magoo

That must be a terrible setback for all those monetary-reform k00Ks who lost their minds when governments shifted from gold currency to fiat currency.

Me, I'm just glad they didn't opt for "tulip currency".  Gold was mentioned in the Bible, so it must be special.  And, it can be used for plating the connectors on an HDMI cable!  Then you can charge double for that cable, and stimulate our economy!


Where Will It Stop?": Libor Spread Blows Out Beyond Eurocrisis Highs, Central Banks Intervention AwaitedThis morning's 3M USD Libofixing jumped higher for the 27th consecutive session, rising to 2.2018% the highest since December 2008. 

Compalceny abounds! Let´s Total Financial and Non finacial debt now at 500% of GDP in the States...a rise of rates to 5% would mean that 1 of every $4 GDP must be paid in debt...will it go up to 100% before people pay attention?

100% means of course no income neither for corporates, nor people...maybe people can learn to eat their credit notices?


Don't worry, we are assured by US media that Trump's new economic advisor Larry 'Kuddles' Kudlow, who replaced the Goldman Sach guy before him, and admitted to a $100,000 a month coke habit in his past and who considers Trudeau 'a leftwing crazy guy', has a plan and will fix all...When it all falls it'll go fast and it looks like that time is close.

Global Capitalism: Cut Taxes, Deport Immigrants, Impose Tariffs

Richard Wolff, Prof of Economics


eutsche Bank (DB) dropped 13% this week to a 15-month low. DB is now down 28% y-t-d. European banks (STOXX) sank 5.0% this week. Hong Kong (Hang Seng) Financials were down 4.9%. Japan's TOPIX Bank index fell 3.3%. In the U.S., banks (BKX) were slammed 8.0%, the "worst loss in two years." The Broker/Dealers (XLF) fell 7.3%.

....trouble is brewing in the derivatives trade...which will take down the system!

The system broke now over 2 months ago...its consequences picking up steam...expect bigger and bigger disruptions!

progressive17 progressive17's picture

looks like a good time to buy!


If the entire monetary system collapsed it wouldn't change the amount of actual wealth available in the world but it will not be permitted to collapse. It didn't collapse 10 years ago either. The wealthy are wealthier than ever before. CEO salaries are soaring to reward them for their excellent work. Unemployment is low. Banks are making larger profits than ever before. 

Personal debt is high in Canada but as long as the worker bees stay on the treadmill and interest rates are kept down there is no problem. 

This is all propaganda to keep the general public afraid to push for raises or demand good working conditions. 

The biggest threats to the financial establishment are the new currencies first created by individual communities and now cryptocurrencies. 

Everything else is to frighten us into submission. 

progressive17 progressive17's picture
Michael Moriarity

Or, from a few musical generations earlier, Art for Art's Sake.

Mr. Magoo

he biggest threats to the financial establishment are the new currencies first created by individual communities and now cryptocurrencies.

Cryptocurrencies are just Digital Tulips.  There's no law against speculating in tulips.


The Network of Global Corporate Control (2011)

"The structure of the control network of transnational corporations affects global market competition and financial stability. We present the first investigation of the architecture of the international ownership network, along with the first computation of the control held by each global player. We find that transnational corporations form a giant bow-tie structure and that a large portion of control flows to a small tightly-knit core of financial institutions. This can be seen as an economic 'super-entity' that raises new important issues both for researchers and policy makers..."


Finally, going back to the current level of Libor, whether the reason for its sharp move is systemic or technical remains irrelevant in the context of the big picture: what is relevant as we said over a month ago, is that over $300 trillion in debt instruments which reference Libor, are now paying far more in interest than they used to, with the double whammy being the sharp spike higher, which adds to the pain from the move. Furthermore, the fact that the move wider in both Libor and Libor-OIS has been far longer than all of the so-called experts predicted, suggests that the tightening in monetary conditions is far greater than the prevailing level of the S&P suggests. Indeed, one look at the stock price of Deutsche Bank, or the blow out in bank CDS confirms this......from zerohedge

people can choose to deny reality if they so wish...there are just too many indicators out there now, that the global financial system has broken...the 2007 to 9 financial crisis, where debt levels were a fraction of today, where interest rates were high enough to promote serious financial reflationism, will feel like  a picnic in comparison as to what is to come...if you've made your preparations with your communities, fine...if you've remained in complacent denial and apathy...good luck


On Contact: The Coming Collapse of the American Economic System, With Richard Wolff

Chris Hedges and economist Richard Wolff discuss the coming economic collapse of the USA.


China Slaps Tariffs On US Imports Including Pork, Nuts And Wine.......

one more move to increasing inflation...forced increases to the market rates...increasing bankruptcies for the most indebted...a collapsing house of cards


Subprime Auto Bubble Bursts As "Buyers Are Suddenly Missing From Showrooms".....from zerohedge

....all coming down like a house of cards.....the weakest links first....


Canada’s Five Giant Banks Ought to Be Nationalized, Not Bailed Out

Canada’s banking system is on the edge of a crisis, once again, with a collective debt of $1.8 trillion — and the public will be on the hook for most of it, sooner than most think.

Last week, the Bank for International Settlements (BIS) revealed that Canada, Hong Kong and China’s banking systems are the world’s most at-risk of a severe crisis. BIS joins the International Monetary Fund, Moody’s and S&P Global Ratings in warning record-high consumer debt could tank Canada’s “five giants” in the case of a downturn. The Bank of Canada’s Senior Policy Director, Gino Cateau, calls such debt the Canadian economy’s “key vulnerability.” The post-2008 lending surge, which boosted consumer spending to keep the economy afloat, has driven many to the edge of insolvency. Ipsos, for example, found 52 per cent of Canadians are $200 from bankruptcy by the end of an average month.

We’ve seen this before. Leading up to 2008, Canadians had about the same debt-to-income ratio as Americans. And, when the recession struck, Canada’s five giants faced insolvent borrowers and the federal government bailed them out. Most of the money came from the Canada Mortgage and Housing Corporation, which bought loans that soured, but total support peaked at $114 billion. At around seven per cent of Canada’s 2009 GDP, Canadian Centre for Policy Alternatives economist David Macdonald notes, it would’ve been cheaper to buy most of the banks.....


Russell Napier: The Rising Dollar Will Trigger The Next "Systemic Banking Crisis" by Tyler Durden

The crack in the system, as I´ve proposed in previous messages, this past february...forcing the US Fed to begin ending its quantitative easing......and with growing trade imbalances and rising deficits in the USA has been forcing up the treasury and bond rates...this has been forcing up the price of the US putting into jeapordy, all countries high in debt in US dollars... 

This past week showed increasing signs of the collapsing global financial system, what with huge increases in Emerging Nations rates to slow their collapsing currencies......not to forget their banking systems high in US dollar debt...likewise in deep systemic crisis....

The system of globalization is going down with the spreading panic in global finanical circles....



There ought to be a new the crisis has now fallen into collapse......

May 10 - Financial Times (Robin Wigglesworth): "The investor withdrawal from emerging markets accelerated over the past week, with equity funds suffering their worst outflows in nearly a year and bond funds losing money for a third week running - the longest streak of withdrawals since late 2016… EM equity funds had outflows of $1.6bn in the seven days to May 9, the first weekly outflow since February and the biggest since August 2017… Fixed-income funds focused on the developing world saw their outflows accelerate. Investors withdrew $2.1bn from EM bond funds, the third consecutive week of outflows and the worst one since February. EM debt funds have now suffered outflows of more than $4bn since mid-April."

Argentina, Turkey definitely are now in panic mode....Brazil, Malaysia suffering serious decline in their currency and bond yields...the collapsing EM or emerging market countries inevitably has to infect the core countries of the western financial system...this is now´s a deck of cards, one collapsing onto the next...and the timing seems to be gaining speed! 


The S&P 500 Index slumped as health-care and tech shares retreated. The Treasury selloff sent note yields to 3.07 percent. Higher rates sap demand for equities that have been on a tear for two weeks. Upbeat retail sales data fueled bets the Fed may raise rates three more times this year, pushing Bloomberg’s dollar index to its 2018 high. Emerging-market equities dropped the most since March. Gold fell below $1,300 an ounce for the first time since December.

Investors grappled with trade, growth, and geopolitical worries as a risk aversion spread across assets. Rising yields, a stronger dollar and sliding stocks are fast becoming a familiar and uncomfortable cocktail for investors. Now violence in the Middle East, the U.S.-China trade spat, uncertainty on Italy’s government and global growth concerns are helping cement the prevailing sentiment.....

...uncertainty re Italy is fueling the financial stress there...a familiar story? as nations move to greater autonomy anti globalization governments, likewise their finances will be jeapordized aka Argentina, now with failing currency and interest rates at 40%...


Brazil Central Bank Intervention Fails As Real Rout Accelerates...from zerohedge

​....the crisis of the major emerging markets continues to grow...the core economy financial counterparties, must be taking a big hit right now (Deutchebank!!)

Sean in Ottawa

I do not think there is clarity here even as the warning signs are more dire. The US stocks are not in full retreat and there is a significant likelyhood that this will not happen before a sudden crash. Only with this crash will it be clear what is happening globally. This is a very dangerous position especially as the politics in the leading economies are so far off the rails.



"I would recomend you panic"...peso pounded, lira lashed, rand routed as Emerging Markets crash...(from zerohedge)

whatever may be presently tried to keep the EM markets from crashing...they are no longer working.......all is connected.....the counterparties of the core financiers here must take the losses...this is what is clear....and it is the EM markets that will take down the system...that also is clear!

This is pessimistic? Only if we are not preparing the alternative, building community, alternatives to money systems, alternative horticulture, energy production, collectivist solutions for our needs, built on municipalism, yes!!

Sean in Ottawa

iyraste1313 wrote:


"I would recomend you panic"...peso pounded, lira lashed, rand routed as Emerging Markets crash...(from zerohedge)

whatever may be presently tried to keep the EM markets from crashing...they are no longer working.......all is connected.....the counterparties of the core financiers here must take the losses...this is what is clear....and it is the EM markets that will take down the system...that also is clear!

This is pessimistic? Only if we are not preparing the alternative, building community, alternatives to money systems, alternative horticulture, energy production, collectivist solutions for our needs, built on municipalism, yes!!

Yes, the cliff is getting closer with no clarity in the signals we get as we approach it. This is precisely why crashes happen.

Markets are not indicating how dangerous things are. This is in part due to the fact that wealthy poeple may believe they can game the system enough to escape the pain when it comes. They are wrong.


Russia Dumps Half of its US Treasury Bonds

"Russia has held a major selloff of US Treasury bonds, dumping some $47 billion worth of papers..."


The Global Economy - What Lies Beneath? (and vid)

"Stock markets are near all-time highs, bankers are taking big bonuses once again, and America is shaping up for the mother of all global trade wars...What could possibly go wrong? 

Is the global economy back to 'business as usual' after the great financial crisis? Or is our intuition telling us something different? What is really going on in the markets and the wider global economy? 

Host Roger Ashcroft is joined by investor, hedge fund manager and author of Planet Ponzi, Mitch Feierstein."


Global contagion from the collapse of Emerging Markets!

In fact, as Bloomberg reports, outflows from U.S.-listed exchange-traded funds that invest across developing nations as well as those that target specific countries totaled $2.7 billion in the week ended June 15, the most in over a year and more than seven times the previous week. I warned recently, the counterparties in "our" financial system will be hit first!

But the situation is far more grave, generally, globally.......we are now into the 4th month of a global financial collapse....a several hundred year system doesn't turn to dust and chaos overnight...but the crisis is reaching the homefront now! Argentina, Turkey, Brazil, now Mexico, the peripheral Eastern and southern European countries...but above all China....its major corporations facing defaults on their loans what with a lack of access to more finance capital, above all from the Chinese shadow banking system...and now facing a trade war! Checkmate!

Scary stuff!


Left Forum on Negative Economics (and vid)

Dr Michael Hudson's presentation on the current contributors to growth. Privatization and expropriation of the public domain. 

progressive17 progressive17's picture

Why doesn't the left focus on helping people instead of buying into economics, which is the dismal science? No one will care what the left has to say about economics.


I have little time for most economists. Hudson is not like most economists:

"Socrates is discussing the morality of paying debts. 'Is it fair to return a weapon to a man who's become a lunatic?' Wealth is as destructive as poverty' etc. Definitely worth a listen. 


If anything the US dollar and US stock markets will rise as the thugs are in control for the indefinite future

Just look at the stock indices.

What are you going to do for your retirement apart from  paying off or down your mortgage

put your money in a bank deposit and you will quickly go broke taking inflation into account

Canadians need to start big time investments into blue chip stocks



Investing  in stocks has never been better


The US stock indices are up (but the banksters index was sharply down this last quarter) because there is a generalized state of panic globally, in Latin America, the Eastern Europeans, the Asians and now China...their markets now consistently down......

Look at the last financial crash, only to be bailed out by the taxpayer to the tune of 23 trillion in the US.....with the panic and collapsing junk bonds and subprimes in the US, their blue chips kept rising til later in 2008, when the collapse was well advanced.........people are fleeing in panic to safe havens...and with news of China's attack on the US techs, watch the Nasdaq fail first...

anyone putting their capital into US blue chips is not only morally decadent, but heading for bankruptcy!

Good riddance!


July 12 - Bloomberg (Lianting Tu and Finbarr Flynn): "A rout in China's dollar-denominated junk bonds is getting worse as mounting defaults send traders running for cover. Rising trade tensions are also adding to longer-existing difficulties created by the nation's push to cut excessive leverage.....

June has been an especially bad month for the global capitalist the contagion continues to spread and deepen....Central Banks everywhere are throwing their reserves to stop the collapse of their currencies and bond markets...til they run dry.....feels like we are getting close to a flexion point of incomparable dimensions....


The Weaponization of the US Dollar   -   by Pepe Escobar

"Crashing currency chos spreads across the global south..."


 "Five Surprising Outcomes of the Financial Crisis - We Learnt the Dangers Posed by 'Too Big to Fail' Banks but Now They Are Even bigger."

Tett's article is worthy of extended excerpts: "What are these surprises? Start with the issue of debt. Ten years ago, investors and financial institutions re-learnt the hard way that excess leverage can be dangerous. So it seemed natural to think that debt would decline, as chastened lenders and borrowers ran scared. Not so. The American mortgage market did experience deleveraging. So did the bank and hedge fund sectors. But overall global debt has surged: last year it was 217% of gross domestic product, nearly 40 percentage points higher - not lower - than 2007."

A second surprise is the size of banks. The knock-on effects of the Lehman bankruptcy made clear the dangers posed by 'too big to fail' financial institutions with extreme concentrations of market power and risks. Unsurprisingly, there were calls to break them up. The big beasts are even bigger: at the last count America's top five banks controlled 47% of banking assets, compared with 44% in 2007, and the top 1% of mutual funds have 45% of assets."

A third counter-intuitive development is the relative power of American finance. In 2008, the crisis seemed to be a 'made in America' saga: US subprime mortgages and Wall Street financial engineering were at the root of the meltdown. So it seemed natural to presume that American finance might be subsequently humbled. Not so. American investment banks today eclipse their European rivals in almost every sense… and the financial centres of New York and Chicago continue to swell…"

Then there is the issue of non-bank financial companies. A decade ago, investors discovered the world of 'shadow banks', when they learnt that a vast hidden ecosystem of opaque investment vehicles posed systemic risks. Regulators pledged to clamp down. So did the shadow banks shrink? Not quite: a conservative definition of the shadow bank sector suggests that it is now $45tn in size, controlling 13% of the world's financial assets, up from $28tn in 2010. A regulatory clampdown on the banks has only pushed more activity to the shadows."

A fifth issue to ponder is the post-crisis retribution. Back when lenders were falling over by the dozens, it seemed natural to presume that some bankers would end up in jail. After all, there were hundreds of prosecutions after the US savings and loans scandals of the 1980s. But while banks have been hit with fines in the past decade, totalling more than $321bn, (almost) the only financiers who have done jail time are those who committed crimes that were not directly linked to the crisis, such as traders who rigged the Libor rate." Gillian Tett, Financial Times.....

...surely this is as good as it gets for a Call to Revolution!!