In an interview that had the BBC staff in shock, a trader highlights how now is the time to be very scared, how this will not end well, and how Goldman Sachs, not governments, run the world.
I have to say this is not an interview that you would see on CNBC (CNBS). Stunning.
So in the interview above we have someone telling what I at least think is the truth about the current market turmoil. But that is not the only interesting banking news today.
We apparently had a mega behind doors clash over the weekend between international bankers. On one side was Jamie Dimon of JPM and on the other Mark Carney of the Bank of Canada (Canada's equivalent of the Fed).
http://www.theglobeandmail.com/...
http://www.theglobeandmail.com/...
In a scene that resembles a public confrontation Mr. Dimon had with Federal Reserve Chairman Ben Bernanke in June, Canada’s central bank governor was the lighting rod for a tirade by the JP Morgan chief over tougher financial regulations.
Actually, according to The Globe and Mail's Kevin Carmichael, it appears to have been more a full-on assault by Jamie Dimon against Mr. Carney at weekend meetings in Washington.
Mr. Dimon's tirade came in a room filled with bankers and finance officials.
Dimon continues to ignore reality (the banks messed up big time and if not restrained will mess up again big time).
Carney on the other hand let loose with his comments in a speech later on. Clearly the man who could become the head of the Financial Stabilization Forum is not sympathetic to the "let us be free" banks.
“If some institutions feel pressure today, it is because they have done too little for too long, rather than because they are being asked to do too much, too soon,"
As an aside it is interesting to note that Mark Carney is ex Goldman (the exception that proves the rule?), but that in Canada the Bank of Canada head is usually non-partisan and does seem to work for the benefit of the entire economy (not just the banks). For example Carney for some time has been warning Canadians about taking on too much debt (no "go out and borrow and spend" from him).
Carney's predecessor at the Bank of Canada was David Dodge (a good banker for a change). Dodge was really the man behind Canada's turn from being heavily indebted to running budget surpluses when he was Deputy Minister of Finance.
http://www.theglobeandmail.com/...
What’s bananas in Mr. Dodge’s book is a lack of global co-operation and “stupid” political theatrics, particularly in the United States, which are preventing the world’s leaders and financial authorities from getting on with the business of fixing global economic imbalances. The global co-operation that worked so well during the 2008 meltdown, he says, has “lost momentum.”
At the same time, the list of economic ailments is growing. China’s currency is artificially low. In Europe and North America, households are bogged down by debts, job growth is stalled and governments are burdened with too much debt. Add it all up, he says, and “clear and real economic growth is not in the cards for some time.”
How bad will it get? To this question, Mr. Dodge responds with another: “Are we in North America and Europe facing a Japanese decade?” The question will not be directly answered, but his implication is clear: Most of the industrialized world is a long way from economic recovery.