The financial system is proven to be corrupted at its core, anywhere you look there is deception and government intervention to support with tax payers money institutions that are unwilling to confront their own inefficacies and misplaced purpose.
It is not that we do not know how to fix it. It is the greed of policy makers that is not allowing laws and decisions to correct the deficiencies of the financial system to be put in place.
Here the danger is the continues build up of wealth inequality. While tax payers get stripped of the assets to be directed to those int eh financial industry, the industry leaders continue to collect obscene amount of money for false and poor performance. Here is were the board of directors have proven to be allies of the problem, all regulatory entities have failed to take steps to put investors as owners with direct or indirect power to control corporate leaders abuses and deceptive practices driven (now clear) to self enrichment and failing their corporate duties.
As of late we have learn that Mr. Bernanke is an expert at tracking equities, and he values equities values as meter of his performance. See ABC interview last week.
Thanks to free cash provided to financial institutions, institutions that should be allowed to fail, the carry trade allowed by the fed and the treasury department is creating a monster of leverage.
If the Lehman and Bear Hedge funds collapse were the trigger of the past round of financial ineptitude, the present carry trade and governments push to create inflation has the potential to create the mother of all financial disasters. As they continue to deceit the rest of us, their assymetric knowledge is not as superior as they think.
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