Mario Draghi Hints Trump Will Be Responsible For The Next Financial Crisis

Earlier today, the portfolio manager of the world’s biggest hedge fund, Mario Draghi, whose total assets held by the European Central Bank’s special situations fund amount to 3.72 trillion, or 36% of the eurozone’s GDP…

… said that it is not his gargantuan “portfolio”, or the roughly $14 trillion in global central bank liquidity sloshing around (as lamented earlier today by Bill Gross) that would be the catalyst for the next market crash, but rather that it was Donald Trump’s deregulation of the banking industry that has “sown the seeds of the next financial crisis.”
Cited by Reuters, Draghi argued that lax regulation had been a key cause of the global financial crisis a decade ago, and said the idea of easing bank rules was not just worrying but potentially dangerous, threatening the relative stability that has supported the slow but steady recovery.
“The last thing we need at this point in time is the relaxation of regulation,” Draghi told the European Parliament’s committee on economic affairs in Brussels. “The idea of repeating the conditions that were in place before the crisis is something that is very worrisome.”

This post was published at Zero Hedge on Feb 6, 2017.

 

Leave a Reply

Your email address will not be published. Required fields are marked *