if you’re a lender there’s an easy recipe for maximizing fake accounting income. And it goes like this. You need four ingredients: 1/ grow like crazy 2/ by making really, really crappy loans but at a premium yield (yield just means 'interest rate') 3/ while employing extreme leverage, 4/ and while setting aside only the most trivial reserves or allowances for the inevitable losses this kind of behavior produces." William Black
The Financial Tsunami: The preeminent role of New York banks and Wall Street investment banks.
In this three part series the author F. William Engdahl analysis the current financial Crisis and the role that the New York Federal reserve and the wallstreet bankers have played in bringing this crisis about.