Stirling Newberry argues that the failure to achieve real reform of the financial system means we are in the same place we were just before the 2007-07 crisis: central banks’ “easy money” policies, coupled with a paucity of real investment opportunities, is already resulting in continued stagnation of the real economy and wages, and increasing reliance on offshoring to countries with lower wages, benefits, and safety regimes. In the process, Newberry performs the inestimable public service of slapping down the pretensions of Niall Ferguson.

Newberry begins by noting where the hot money is going now.