Banks as Parasites – You’ve Been Warned

In his new book ‘The Tragedy of the European Union’billionaire financier George Soros says:

George Soros (Credit Wikipedia Commons Copyright World Economic Forum. Swiss-image.ch Photo by Sebastian Derungs

George Soros (Credit Wikipedia Commons Copyright World Economic Forum. Swiss-image.ch Photo by Sebastian Derungs

 

“The profitability of the finance industry has been excessive. For a while 35pc of all corporate profits in the United Kingdom and the United States came from the financial sector. That’s absurd.”
Mr Soros outlined how the problems that caused the Eurozone economic crisis remain largely unresolved.
“Very little has been done to correct the excess leverage in the European banking system. The equity in the banks relative to their balance sheets is wafer thin, and that makes them very vulnerable.
“The issue of “too big to fail” has not been solved at all.”
The proposed solution of a European banking union does not address the underlying problems, Mr Soros adds.
“A real danger to the financial system is the incestuous relationship between national authorities and bank managements. France in particular is famous for its inspecteurs de finance, who end up running its major banks. Germany has its Landesbanken and Spain its caixas, which have unhealthy connections with provincial politicians.” – London  Daily Telegraph

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