The confluence of budget cuts to regulators like the SEC and CFTC, which were no Batman and Robin even at full strength, coupled with a likely skeleton staff at the new consumer finance protection agency spells disaster sooner rather than later.
Sadly Mr. Ferguson’s prediction, made during an interview with Andrew Ross Sorkin of the New York Times, that another financial meltdown is ten years away is overly optimistic. I fear the confluence of budget cuts to regulators like the SEC and CFTC, which were no Batman and Robin even at full strength, coupled with a likely skeleton staff at the new consumer finance protection agency — thanks to the tea party’s misguided efforts to demand budget cuts no matter the harm to Main Street — spells disaster sooner rather than later.
Moreover, on Wall Street the beat goes on, with new "synthetic derivatives" being created on a daily basis. These instruments merely line the pockets of lawyers and bankers and traders — while substantively increasing one thing and one thing only: volatility and risk.
Finally, world events will no doubt add to market turbulence. Even if every government in the Middle East miraculously survives this latest wave of popular uprising, tensions will remain high. All that is needed is a nuclear scare in Iran or Pakistan and US markets could be thrown into a another tailspin.
With all due respect to Mr. Ferguson, my prediction is 3-5 years.