“The crisis doesn’t destroy wealth, it merely evidences the extent to which wealth has already been destroyed by stupid investments made in the boom.” This is critically important, as banking (or financial) crisis do not start the day the market collapses but years before, and as Punk Economics’ David McWilliams explains, this is usually driven by banks (central or otherwise) beginning to lend recklessly using other people’s money to ramp up asset values. So, with that in mind, what have we learned from the 2008 banking crisis? (spoiler alert – nothing good).
via Zero Hedge http://ift.tt/1iPRIjY Tyler Durden