Yes. I think the Federal Reserve will go on raising rates.
Inflation is just too high. Officially 6 %, but for basic products I would bet the inflation rate is more like 10 % year on year.
Yes, Wall Street is very powerful, but if Main Street depositors start withdrawing their deposits, large Wall Street banks would just go bankrupt.
Simply because banking is a leveraged business by default, fractional reserves.
Regulation and people mindset are key, because they insure trust, stability and smooth functioning of the banking system.
And no, leverage banking should stay, I think. It just needs to be policed better.
Because what is the alternative?
Saving and loans cooperatives? Just search on the Internet for the US savings and loans crisis during the 1980s and 1990s. Sparkasse model in Germany? And you find it difficult to have global scale investment banking and you mostly rely on relatively cheap labor and cheap natural gas and oil from Russia to sustain a significant part of the industry, according to my opinion and observations and many media reports.
And no, the issue is not the salaries of the regulators. People in large financial centers get very large salaries and look what happens.
One just needs to be selective when hiring, I think.
'Human nature rarely changes, if at all' as per Warren Buffett.
True, but if one makes too many mistakes, things can run out of control. And the social contract could just be nullified, and we would all waiting at bread lines.
I remember my grandmother lining up for bread during the 1996-1997 hyperinflation crisis in Bulgaria and holding my hand.
I just hope humanity has learned its lesson, this time around.
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