Saturday, July 4, 2015

Repost: Nomi Prins Presentation at the Federal Reserve/IMF/World Bank Annual Conference

Nomi Prins was invited to give a presentation at the Annual Conference on Policy Changes for the Financial Sector in Washington, DC. Below is a link to her slide presentation given at the conference in early June. 

The theme of this presentation is on Slide #2 
 How Do We Get Banks to Better Serve the Real Economy?

Here are a few points listed on the slides:

-The biggest (too big to fail) banks have only gotten bigger since 2008

-Increased liquidity from QE programs has not filtered down to the general economy

-The QE and low interest rate programs have increased systemic risk and volatility

-The current system has created moral hazard while not doing much for Main Street

-Regulators need to hold banks and executives truly accountable for illegal behavior

-Bad behavior by some banks has tarnished public confidence in the industry

-Smaller more community oriented banks would better serve the public

-Focus s/b on building the economy from the bottom up instead of from the top down

(Please review the full slide presentation above to get the full context)


My added comment:

Just a couple of quick points on this. I think its great that a well known critic of the current banking system was invited to speak at a conference like this on the topic of how banks can better serve the real economy and relate to the average person. The free and open exchange of ideas and the willingness to listen to different points of view makes it more likely that future decisions will be made on a more informed basis. I see that as a good thing. 

Also, I have mentioned here on the blog that my own research leads me to believe that there may be an information gap between those inside the system and those outside the system. The more they reach out to each other, the better the chances are for that gap to be reduced. So I am glad to see events like this take place. 

I suspect both those inside and outside the system can benefit from information exchanges and exposure to various points of view if the discussion takes place in the right atmosphere of courtesy and mutual respect. A goal of this blog is to present information that is as accurate as possible and to present a variety of credible view points with respect given to each credible view. Input from any readers here (inside or outside the system) that can assist that process is always welcome here on this blog. Feel free to send an email anytime.

Added note 6-20-15:

Right after this blog post Nomi Prins did an interview with King World News in which she agrees with those who think that the current financial/monetary system will not survive and will end with a crisis bigger than the 2008 crisis. The interview is in two parts and you can see them at the links below:

Nomi Prins - KWN - Part I

Nomi Prins - KWN - Part II

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