So they say the financial crisis of 2008 was caused by

a) too much liquidity... well since then the US Fed has pumped in hundreds of billions of additional liquidity.

b) low yields that pushed investor to riskier assets ... rates are lower today than in 2008, and near zero in most advanced economies

c) 'too big to fail' banks ... guess what - the US banks are bigger today than they were in 2008.

And the last nail in the coffin? The moral hazard, the bet that the taxpayers will pick up the pieces when bets go bad, has been reaffirmed more than once. And they are surprised that the crisis is back???

What do these people smoke?

Our money..

oh damn.. its back yet again

To the regulators and politicians who are no doubt huddling right now, debating over the best way to fix the mess, here's something to keep in mind: one definition of insanity describes it as "doing the same thing over and over again, and expecting different results".

Come back Gordon Brown - he's the man to fix all financial problems. Err, how do we know this? well because he told us so :-)

Now before you accuse me of being crazy, I detest Gordon Brown, the MP that described him as the "worst Prime Minister this country has ever had" was pretty close to the mark.

I don't think it's 2008 all over again, I don't think that the problem was ever properly addressed. Pumping money into a system that's suffering from excess liquidity is like throwing petrol on a fire to put it out. What should have happened last time around, was to have let the non-viable, up-shit-creek banks etc simply fail. Then, pick up the pieces, sort out proper regulation and legislation (becuase we know we cannot allow the banks to govern and regulate themselves properly) and start over anew. Gordo's prize winning solution though was to chuck a shed load of money at the problem, all fine just so long as it's someone else's money.

The financial crisis of 2008 is not over yet...

false. you did notice the liquidty crisis AFTER the shit hit the fan didn't you?


Yeah, investment bankers making sacks of cash were literally FORCED to make bad business decisions....The were FORCED to invest in credit default swaps and working in collusion with ratings agencies.

How did their size that create the crisis to begin with?

Whatever it is, you appear to be downwind.

There wasn't really a proper recovery after 2008.

The markets rallied, as indeed they always do after a crash, but that's not the same as a deep recovery. It's just what naturally happens when the panic passes and buyers realise stocks are massively undervalued. The companies and values behind those stocks haven't recovered. Employment hasn't picked up. There cannot be a real and deep recovery until the economy as a whole starts improving. We look at the markets too much and miss the bigger picture.

Foreigners (China?) dumping US bonds at record pace:

http://www.federalreserve.gov/releas...t/h41hist9.txt

check the last 7 weeks.