Sheila Bair Warns Us About the Next Financial Crisis, Here’s How to Avoid It
I’m not smart enough to know exactly when the financial markets will blow up again. Nobody is.
However, I am smart enough to know they will explode in the not too distant future, and when they do, the people left holding financial assets will take a beating.
Fortunately, knowing this key fact is enough to save yourself and your community from harm. I’ll tell you why at the end of today’s letter.
I’m not alone in thinking that another big financial crisis is just around the corner. Sheila Bair thinks so too, and she’s a person that should know.
She had a ringside seat during the last crisis as the head of the FDIC, the federal agency that shuts down bad banks to protect our bank accounts against loss. She’s also an anomaly in politics and finance: she’s a “straight shooter” and a person that actually cares about the rest of us more than she cares about a career or money.
On Saturday, I was at a private talk where she explained why she believes that a financial crisis in the next five years is VERY likely.
Let me sum it up for you: nothing was done after the last financial crisis to prevent another financial crisis in the near future.
Why wasn’t anything done? The financial industry is much more powerful than the US Congress.