In their inability to think beyond two days, both stock market traders and market fundamentalist journalists are celebrating the good numbers of the stock market today. But this article looks at the deeper issues. For one thing the banks clearly protect equity holders while bond holders take the hits in any collapse. Secondly, most banks do not have the money to cover runs on the banks. Thirdly, the smaller and regional banks cover mainstream loans and these are the most vulnerable.
Read Michael Roberts in The Next Recession
