boom bust oscillation
see instability
chaos
https://www.alternet.org/2020/05/why-are-there-more-swing-states-these-days-what-we-are-witnessing-is-a-major-political-realignment-in-process/
https://www.alternet.org/2019/07/why-elizabeth-warren-thinks-the-warning-lights-are-flashing-and-a-new-financial-crisis-is-looming/
[bunch of other art'l i ignored on predictor curve last few weeks' OTOH i have been tracking weaken dodd-f and cfpb for a while]
no lnx twt
Why Elizabeth Warren thinks the ‘warning lights are flashing’ and a new financial crisis is looming
Written by Andrea Germanos / Common Dreams July 23, 2019
“Warning lights are flashing,” Sen. Elizabeth Warren wrote Monday, predicting an economic crisis within two years unless federal regulators and Congress take swift action.
The Democratic presidential contender outlined the reasons for her concerns and plans to address them in a Medium post entitled “The Coming Economic Crash—And How to Stop It.”
Team Warren
?
@TeamWarren
.@ewarren warned us about the 2008 crisis years before it hit. Now she's seeing serious warning signs again—and she's calling for action. Read, share, and join the fight: https://medium.com/@teamwarren/the-coming-economic-crash-and-how-to-stop-it-355703da148b …
The Coming Economic Crash?—?And How to Stop It - Team Warren - Medium
By Elizabeth Warren
medium.com
As she did in the years leading up to the 2008 economic crisis, Warren now sees “a lot to worry about again.” According to the Massachusetts Democrat, there are “a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble.”
“The country’s economic foundation is fragile. A single shock could bring it all down,” she wrote. “And the Trump administration’s reckless behavior is increasing the odds of just such a shock.”
Among the potential triggers she laid out is thelevel of household debt.Warren referenced recent data showing that household debt is now $869 billion higher than the $12.68 trillion peak it hit in 2008.
To remedy that, she cued up several of her already-released plans, including raising the minimum wage to $15 an hour, canceling most student loan debts, offering free public higher education, and making child care affordable.
She also called on federal regulators to swiftly address the potential shock that lies in leveraged corporate lending.“Leveraged lending—lending to companies that are already seriously in debt—has jumped by 40 percent since Trump took office, spreading ‘systemic risk’ throughout our financial system,” wrote Warren.
Federal regulators, she wrote, should “enforce leveraged lending guidance that is intended to stop banks from issuing these risky loans in the first place.”
Warren also cited the current manufacturing recessions—a problem she said could be flipped by enacting her Green Manufacturing Plan.
Inoculating the economy from “potential shocks” also will happen by “strengthening critical American industries, instead of undercutting American companies” and eliminating the debt ceiling, she wrote.
A crisis could be averted, wrote Warren, “if we take bold action now to address the underlying problems in the economy.”
Warren’s new plan rollout came the same day as Democracy for America’s latest straw poll showed her closing in on Bernie Sanders’s lead among the progressive group. The Vermont senator notched just over 32 percent to Warren’s roughly 26 percent, both well ahead of third place Kamala Harris’s 12 percent. The group’s previous survey in April showed Sanders as the frontrunner and with a 30-point lead over Warren.
https://www.alternet.org/ex-wall-street-banker-sounds-alarm-ten-years-after-financial-crisis-were-going-end-same-situation
Ex-Wall Street Banker Sounds the Alarm: Ten Years After the Financial Crisis, 'We're Going to End Up In the Same Situation'
William Cohen warns next time, it might even be worse.
By Elizabeth Preza / AlterNet August 5, 2018, 4:46 PM GMT
William Cohen—a former senior-level mergers and acquisitions banker on Wall Street who is now a special correspondent for Vanity Fair—on Sunday spoke about the ten-year anniversary of the 2008 financial crisis, warning the practices that prompted the economic collapse have not substantially changed in the past decade.
In an interview with CNN’s Ana Cabrera, Cohen warned the United States has not made the necessary changes to prevent another devastating recession.
“I wish I could say that we had, but we haven’t,” Cohen said.“The main driver of bad behavior on Wall Street is the compensation system, what people get rewarded to do. People are pretty simple—they do what they are rewarded to do. Wall Street is still rewarded to take big risks with other people's money. They are not rewarded to take prudent risks. We're going to end up in the same situation again. I'm afraid it's going to happen much sooner than anyone would like and it will be just as bad as the last one, if not worse.”
“We need to change what bankers are rewarded to do so they are not rewarded to to swing for the fences as if it were somebody else's money, because it is, as opposed totheir own money where they will be prudent about their risk taking,” Cohen explained. “That's the single biggest thing we should change if we want to change this kind of an outcome from happening again.”
Cohen also described the “very short-term psychological damage” stemming from the 2008 financial crisis.
“Institutions that we once had a lot of faith in the banks, Wall Street, were completely shattered,” Cohen explained. “A lot of faith was lost in Congress because they voted down the TARP (Troubled Asset Relief Program) the first time and only passed it the second time. I mean, honestly, if you look at the economy now and the spirits that are raging now, I think it was sort of a short-term frightening and scary effect, but now ten years later, I bet most people don't even remember it. Most people who are young on Wall Street couldn't even tell you what had happened.”
Watch below:
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