Fed Official Warns of Changes--Washington Post
A top Federal Reserve official warned yesterday that the U.S. financial system is evolving faster than the ability of investors, lenders and regulators to evaluate and manage the risks involved.
Sounds to me like he is sounding an alarm that does not need to be sounded. Most people who invest realize that there are no guarantees. Wait. I forgot about the trial lawyers. They are always out to blame somebody, and then, if successful, they then capture 99% of the "settlement", then distribute what paltry sum remains to the actual people who lost the money in the first place. But, I digress. Here is quote that sums it all up-
Geithner said recent financial innovations have helped the economy absorb various financial shocks, "but they have not eliminated risk." He added, "They have not eliminated the possibility of failure of a major financial intermediary. And they cannot fully insulate the broader financial system from the effects of such a failure."
Again, there are no guarantees.
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