The Old New Financial Risk
The main financial risk facing the United States today looks very similar to what caused so much trouble in 2007-08: big banks with too much debt and too little equity capital on their balance sheets. We already saw this movie, and it ended badly; next time could be a real horror show.
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WASHINGTON, DC – The main financial risk facing the United States today looks very similar to what caused so much trouble in 2007-2008: big banks with too much debt and too little equity capital on their balance sheets. Uneven global regulations, not to mention regulators who fall asleep at the wheel, compound this structural vulnerability.