James Rickards to Trump: It Is Glass-Steagall or Bust
Dec. 28, 2016 (EIRNS)—James Rickards, the lawyer who negotiated the Long Term Capital Management bailout and author of the best seller "Currency Wars: The Making of the Next Global Crisis," told Market Watch today that Trump has but one choice to avoid the otherwise inevitable crash of the financial system: Glass- Steagall.
"The exact timing does not matter," Rickards said.
"What matters is that the crisis is inevitable and coming soon.... Since we have vastly increased the scale of the financial system since 2008, with larger banks, greater concentration of banking assets in fewer institutions, larger derivatives positions, and $70 trillion of new debt, we should expect the next crisis to be much worse than the last. The next crisis will be of unprecedented scale and damage."
"The policies to avoid a systemic catastrophe in the financial system that I would recommend to the Trump administration include reinstatement of Glass-Steagall, breaking up big banks and banning derivatives. The odds of any of these policies becoming law are close to zero because of the power of bank lobbyists."