Better Markets CEO now predicts a financial crash worse than 2008

Better Markets CEO, Dennis Kelleher, now predicts a financial crash much worse than 2008, stating “the clock is ticking”.

Dennis Kelleher, the tireless Co-Founder and CEO of Better Markets, has just unveiled the organization’s January 2025 newsletter, and it’s a compelling call to action for anyone concerned about the future of our financial system.

However, despite the claims, it is important to mention that many retail investors have expressed optimism in the stock and crypto markets for 2025.

The markets are expected to surge significantly this year under Trump, though only time will tell.

Below is the CEO’s analysis.

The Impending Crisis: A Dire Prediction

Kelleher raises an alarming red flag regarding the incoming administration of President Donald Trump, particularly highlighting the financial deregulators he has appointed.

He warns that “the clock is ticking on a coming catastrophic financial crash that will likely be much worse than 2008.”

This is not mere rhetoric; Kelleher backs his claims with historical evidence, noting a consistent pattern of financial instability following deregulation.

Kelleher states:

“There is always a lag after deregulation and the creation of artificial liquidity.

This was true for the ‘roaring ‘20s’ leading to the crash and Great Depression, the ‘great moderation’ of the early 2000s preceding the Great Recession, and the deregulation during the first Trump administration from 2017 to 2020, which culminated in the 2023 banking crisis with three of the four largest bank failures in U.S. history.”

He warns that the next crisis could be even more severe.

The Exodus from Oversight: Key Figures Departing

This potential for disaster might explain why Michael Barr, the Vice President for Supervision at the Federal Reserve, is stepping down and seeking safer waters.

Kelleher’s poignant assertion, “Banks don’t neglect their duties, act recklessly, engage in high-risk behavior, or break the law – bankers do,” underscores the necessity for accountability.

He insists that significant personal consequences must be imposed on individual bankers to prevent such reckless behavior from continuing.

A History of Impunity: Wall Street’s Escape from Accountability

As documented by Wall Street On Parade, the landscape of accountability has been disturbingly consistent, regardless of which political party is in power.

Wall Street has managed to operate in a “no-law zone,” often receiving tacit approval from the U.S. Department of Justice.

A notable example was the aftermath of the 2008 financial crash, which left millions unemployed and facing foreclosure.

Investigations into Wall Street’s role were notably lacking, a fact revealed by the PBS program Frontline.

High-ranking officials from the Department of Justice acknowledged a significant absence of investigations into Wall Street practices.

The Financial Crisis Inquiry Commission: A Missed Opportunity

In the wake of the 2008 crash, Congress established the Financial Crisis Inquiry Commission (FCIC) to investigate the causes behind the disaster.

However, when previously classified documents were released in 2016, they revealed a troubling lack of action from the DOJ.

Senator Elizabeth Warren expressed outrage upon discovering that numerous criminal referrals of Wall Street executives had led to no indictments or prosecutions.

Warren’s investigation revealed:

“A review of these documents conducted by my staff has identified 11 separate FCIC referrals of individuals or corporations to DOJ in cases where the FCIC found ‘serious indications of violations’ of federal securities or other laws.”

Despite these referrals, not a single individual faced criminal charges, highlighting a systemic failure to hold powerful bankers accountable.

The Citigroup Case: A Symbol of Systemic Failure

The case of Citigroup serves as a stark example of this failure.

Key executives, including former Treasury Secretary Robert Rubin and CEO Chuck Prince, were implicated in the FCIC’s findings yet faced no legal consequences.

This lack of accountability was exacerbated by the Federal Reserve’s secretive provision of $2.5 trillion in loans to Citigroup during the crisis, further undermining market integrity.

Sheila Bair, former Chair of the Federal Deposit Insurance Corporation, noted the absurdity of Citigroup appearing solvent while receiving massive government support.

This created an illusion of stability that ultimately proved misleading.

Kelleher’s current newsletter poses a crucial question:

“How did we get here?

The financial industry uses its economic power to buy political power, which it then leverages to enhance its economic influence.”

With the recent November 2024 elections, Kelleher warns that the financial sector is poised to benefit significantly from the incoming administration’s anticipated deregulation.

As Kelleher’s newsletter underscores, the looming threats to our financial system are real and immediate.

The combination of deregulation, a history of impunity, and a lack of accountability for financial executives creates a perilous environment for consumers and the economy alike.

Citizens must remain vigilant and advocate for robust financial oversight to avert another catastrophic crash.

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Also Read: JPMorgan CEO Has Now Become The Target of Over 200 Investigations

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