Bankers Lie Again: 2008 Crisis Repeats Itself

The central bankers, the banks, and the bank regulators have lied to all dollar holders and depositors. Just as in 2008, when a financial crisis rocked the world economy, we are now seeing a repeat of the same lies that led to such a devastating economic downturn. The problem is that there isn't enough money in the banking system to cover all of its obligations. Banks have been engaging in fractional reserve banking practices which means they only keep a fraction of their deposits on hand while lending out or investing the rest. This creates an illusion of wealth but it is unsustainable because if too many people try to withdraw their money at once then there won't be enough funds available for everyone. This lack of liquidity has caused banks to become increasingly reliant on borrowing from other institutions or from government-backed programs like quantitative easing (QE). These measures can provide temporary relief but they do not address the underlying problem which is that banks are operating with too little capital relative to their liabilities. As a result, they are vulnerable to any kind of shock such as an increase in interest rates or a sudden drop in asset prices. Unfortunately, these risks were not adequately addressed by regulators before the crisis hit and now we are facing another potential meltdown with potentially devastating consequences for both individuals and businesses alike. The situation has been exacerbated by banks' reluctance to lend out money due to increased risk aversion which has resulted in credit becoming harder and more expensive for businesses and households alike.