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Let’s take a look at a handful of large US and EU banks. They have all crashed and burned since the financial crisis, well before the UK’s decision to leave the European Union.
This is in spite of Central Bank low interest rate policies. Here are Central Bank asset purchases since 2000. I threw in the Bank of Japan and their failed Central Bank policies for color.
To quote Bill Clinton’s attack dog, James Carville, “It’s the economy stupid!” Not Brexit.
What happened to help cause the financial crisis? A massive mortgage credit bubble helped along by changes in government policies (relaxing credit standards, speeding up loan underwriting, etc) and regulations. European banks suffered a similar fate.
Of course, governments love to bailout reckless lenders since they are fulfilling government policies, It is best not to repeat a massive credit bubble,
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