As investors try to fathom what the Fed will (not) do next, it is worth pondering a timely speech made recently by former UK regulator Lord Turner. As he told Swedish economists last week, and repeated to central bankers and economists in London this week, the real story behind the recent dramatic financial sagas – be that the market dance around QE or the crisis at Lehman Brothers five years ago – is that western economies have become hooked on ever-expanding levels of debt.
Until this situation changes it is delusional to think that anyone has really “fixed” western finance with post-Lehman reforms, or created truly healthy growth, Lord Turner insists….what makes Lord Turner’s contribution notable is that until recently he was sitting at the centre of the global financial system – and post-Lehman reform process – he now thinks is so flawed. And from that perspective he points out some curious contradictions...
Read more at the FT and download the speech and presentation slides below
|Adair Turner Speech - pdf||351.18 KB|
|Adair Turner Slides - pdf||874.55 KB|