Tag Archives: LDC Debt

Clearing The Bull on the Financial Crisis – Part II

This is the second in a three-part series of articles on the financial crisis. Part I can be found at this link.

The Real Reason for the Subprime Crisis and Bank Failures

The subprime crisis was not really about management, risks, controls and regulations—these were all after the fact. The crisis was a direct result of human failings which stemmed from a poor system of values. In order to understand this we have to look at and examine the crisis within the context of the industry’s human ecosystem. The following analysis does precisely that.

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Clearing The Bull on the Financial Crisis – Part I

We can never legislate or regulate our way to sustainable banking—the industry needs to adopt a new strategic business model

Déjà vu All Over Again

“They came on in the same old way and we sent then back in the same old way”.

They were the words the Duke of Wellington used to describe the repeated and futile attempts by Napoleon’s Grand Armée to break through the British defenses at Waterloo.

They can equally be used to describe the current prescriptions for the subprime crisis.

We remain mired in the unenviable position where those who know about banking are firmly wedded to the same old solutions, while those who don’t know about banking i.e. some in the mass media and certain politicians, resort to populist rhetoric. Sadly, the debate on the subprime crisis has generated more heat than light.

It is time for something different. However, before we move forward with a new prescription we need to better define the problem.

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