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Fed's Kashkari Says "We Won't See Next Crisis Coming", Compares Banks To Risky Nuclear Reactors

Fed's Kashkari Says "We Won't See Next Crisis Coming", Compares Banks To Risky Nuclear Reactors

Coming as a replacement to perhaps the biggest dove in Fed history, few were expecting former Goldman and Pimco staffer Neel Kashkari to be as vocally outspoken on a topic that is so near and dear to regulators everywhere: their own cluelessness, and more importantly, the topic of "too big to fail" banks, which according to the Fed are a pillar of stability in an unstable world, and which according to Kashkari are anything but.

Investors Are Sitting On The Most Cash Since 2001, Least Overweight Stocks Since 2012

Investors Are Sitting On The Most Cash Since 2001, Least Overweight Stocks Since 2012

Judging by all the bearish commentary unleashed in recent weeks, one would think that the S&P has lost half of its gains since the artificial central-bank driven levitation was unleashed in 2009. Instead it is just over 10% below its all time highs. Still, for many the lack of the low-volume, low-vol levitation they have grown to love so much over the past 7 years, is making them nervous.

2016: The Year Wishful Thinking Fails

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

If we collectively choose wishful thinking, catastrophic consequences are guaranteed.

Wishful thinking has been an integral driver of the "recovery" 2009-2015: asset bubbles aren't bubbles, central bank policies are brilliantly successful, unemployment has dropped to levels of full employment, and so on.

The problems with wishful thinking that I describe in my book A Radically Beneficial World are becoming more apparent by the day:

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