Banks Warn of Bubble While Racking Up 'Bumper Profits'
The Financial Times reports banks are warning of a looming financial bubble, all while celebrating 'bumper profits.' This isn't just irony; it's a familiar dance. Recall 2008, when the very institutions pushing subprime mortgages screamed 'systemic risk' only after securing their golden parachutes. The public absorbed the losses, while executives (some of whom now lead these same 'cautious'
institutions) enjoyed record bonuses. It's a classic move: profit from the risk, then warn everyone else about the consequences. One might wonder if these 'bumper profits' are in any way related to the very leverage and speculative activities that create bubbles. Or perhaps the banks simply possess a crystal ball that only works after their balance sheets are plump. How many times will we hear the
'wise' warnings from those who profit most from the chaos before we question their sincerity? (Spoiler: they're not sincere.)