Too big to fail is returning with a vengeance. The same risk that major Wall Street banks posed in the 2008 crisis when they were too complex, too big and too risky to the global economy to be allowed to fail is alive and well.
According to a recent Bloombergreport the hedge fund industry has officially gone over $3.02 trillion in global assets under its management .
To put that into perspective, that figure is nearly six times the amount that it took for Lehman Brothers to crash and throw the world into financial calamity in 2008.
Not only have big banks morphed into a too big to fail ponzi, but now hedge fund managers are pushing global asset numbers into the same stratosphere. The risk to the global economy is alarming. The threat is real.
Jim Rickards sends the alert saying, “Right now investors are skittish, numerous shocks are waiting to happen and the system is highly unstable due to overleverage and nontransparency.”