"A year after the financial collapse of 2008, indeed some firms are reigning in risky behavior.
'But, the rest of the financial industry does not warrant as much optimism,' says Leo Tilman, president of L.M. Tilman & Co. and author of 'Financial Darwinism: Create Value or Self-Destruct in a World of Risk.' 'We're seeing a lot of very similar behaviors that have led to the previous crisis.'
With a meaningful economic recovery facing an uphill battle, Tilman says it may require another bubble before serious financial reform takes hold. 'I'm thinking about the current environment. Unfortunately it's this shaky bridge over a volcano,' he says.
Meanwhile, Tilman points to three big themes:
- The timing of the next bubble will depend on the U.S. economy and the dollar.
- Economic signs point to extreme caution by mid-2010.
- Ultimately, we still need the right kind of transparency among financial institutions for true financial reform."
America on a "Shaky Bridge Over a Volcano"
October 26th, 2009 at 04:28 pm
March 1st, 2019 at 10:28 am 1551436104