(The following was originally published in TruthDig.)
The year 2016 is off to a rocky start for the stock market, not just in the United States but also globally. Many economists are predicting a financial crash this year or next. Stocks are overvalued without a foundation to hold them up, production is down and debt is high. Central banks, such as the Federal Reserve, have run out of solutions, and investors have run out of confidence in them. The grand illusion of economic recovery is about to be exposed.
Financial fraud is at the heart of the coming crisis. In 2008 when a sector rife with fraud crashed, instead of having to face responsibility the too-big-to-fail banks were bailed out with public dollars. The public, meanwhile, bore the cost not just in dollars but also in lost jobs, lower wages and home foreclosures.
We don’t have to stand by and watch the next crisis, which will hurt millions, unfold. There are steps that should be taken right now by the president to stop financial fraud and stabilize the economy. A new group of financial fraud experts, Bank Whistleblowers United, created a 19-point plan that could be implemented within 60 days, with minimal action by Congress. President Obama could start putting the plan in place now, but so far he has not even prosecuted bank executives responsible for the 2008 crash.