RMF...."I just think the main problem was letting this GIGANTIC "iceberg" of credit derivatives (credit default swaps) lie hidden without any type of regulation.".....
I can agree with that and it appears you are trying to fix blame for the economic mess so maybe you should direct your efforts to what may be the real cause.
Alan Greenspan, Robert Rubin, and Lawrence Summers and the Cost of Doing Business via the Old Boys Network
Saturday, October 18, 2008 at 1:14 pm — admin
--an Old Boys Network that Cost America Plenty, so why is Obama reprising these guys??
femisex.com
On October 9th 2008, the New York Times ran an article titled “Taking a Hard Look at a Greenspan Legacy. The story begins with this 2004 Greenspan Quote:
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“Not only have individual financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient.” — Alan Greenspan in 2004
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Then the Times gives us these Lede grafs:
"George Soros, the prominent financier, avoids using the financial contracts known as derivatives “because we don’t really understand how they work.” Felix G. Rohatyn, the investment banker who saved New York from financial catastrophe in the 1970s, described derivatives as potential “hydrogen bombs.”
And Warren E. Buffett presciently observed five years ago that derivatives were “financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”
One prominent financial figure, however, has long thought otherwise. And his views held the greatest sway in debates about the regulation and use of derivatives — exotic contracts that promised to protect investors from losses, thereby stimulating riskier practices that led to the financial crisis. For more than a decade, the former Federal Reserve Chairman Alan Greenspan has fiercely objected whenever derivatives have come under scrutiny in Congress or on Wall Street."
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Then Now, let’s skip ahead to the MEAT of the story, found after the Jump to page A29, and under this subhead:
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Resistance to Warnings:
“In 1997, the Commodity Futures Trading Commission, a federal agency that regulates options and futures trading, began exploring derivatives regulation. The commission, then led by a lawyer named Brooksley E. Born, invited comments about how best to oversee certain derivatives.
Ms. Born was concerned that unfettered, opaque trading could “threaten our regulated markets or, indeed, our economy without any federal agency knowing about it,” she said in Congressional testimony. She called for greater disclosure of trades and reserves to cushion against losses.
Ms. Born’s views incited fierce opposition from Mr. Greenspan and Robert E. Rubin, the Treasury secretary then.”
More:
“Greenspan told Brooksley that she essentially didn’t know what she was doing and she’d cause a financial crisis,” said Michael Greenberger, who was a senior director at the commission. “Brooksley was this woman who was not playing tennis with these guys and not having lunch with these guys. There was a little bit of the feeling that this woman was not of Wall Street.”
More:
“In early 1998, Mr. Rubin’s deputy, Lawrence H. Summers, called Ms. Born and chastised her for taking steps he said would lead to a financial crisis, according to Mr. Greenberger.”
More:
“On April 21, 1998, senior federal financial regulators convened in a wood-paneled conference room at the Treasury to discuss Ms. Born’s proposal. Mr. Rubin and Mr. Greenspan implored her to reconsider, according to both Mr. Greenberger and Mr. Levitt.
Ms. Born pushed ahead. On June 5, 1998, Mr. Greenspan, Mr. Rubin and Mr. Levitt called on Congress to prevent Ms. Born from acting until more senior regulators developed their own recommendations. Mr. Levitt says he now regrets that decision. Mr. Greenspan and Mr. Rubin were “joined at the hip on this,” he said. “They were certainly very fiercely opposed to this and persuaded me that this would cause chaos.”
Ms. Born soon gained a potent example. In the fall of 1998, the hedge fund Long Term Capital Management nearly collapsed, dragged down by disastrous bets on, among other things, derivatives. More than a dozen banks pooled $3.6 billion for a private rescue to prevent the fund from slipping into bankruptcy and endangering other firms.
Despite that event, Congress froze the Commodity Futures Trading Commission’s regulatory authority for six months. The following year, Ms. Born departed.
In November 1999, senior regulators — including Mr. Greenspan and Mr. Rubin — recommended that Congress permanently strip the C.F.T.C. of regulatory authority over derivatives."
Mr. Greenspan, according to lawmakers, then used his prestige to make sure Congress followed through. “Alan was held in very high regard,” said Jim Leach, an Iowa Republican who led the House Banking and Financial Services Committee at the time.”
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FemiSex:
America finds it so very easy to adopt this High Regard for men. Greenspan, during the 90s was a God-like creature to so very many. Infallible to the plebiscite and regents alike, who followed lockstep after this God-Man.
Now we have another God-Man, Barack Obama as “the One” to be followed. I find it interesting, to say the least, that Obama has brought back Mr. Robert Rubin and Mr. Larry Summers to “stabilize the financial system and turn the economy around,” per Camp Obama.
I find it interesting that Larry Summers, the man who as president of Harvard said that women are just not as smart as men, was so clearly outsmarted by a woman.
Larry-only-penises-can-think Summers Should have slunk off into the sunset after being booted from Harvard for his imbecilic remark. Instead Mr. Barack Obama has tapped him for economic advice!
Hmmm, Larry, that was an excellent 3 a.m. call you made to Ms. Brooksley Born, warning her off saving the American Economy!
Great Job, Penis Head!
What was it you said to Ms. Born?? Oh yeah…She “would create a financial crisis.” That is what you told her. Great Job, and now like a Wall Street CEO, rewarded for failure, you Larry have been given the gigantic bonus….a place on Barack’s econ team!
Psst…Mr. Larry-only-penises-can-think Summers…FemiSex has some news for you: The government now owns our banks, we are a nationalized system at present and this may all stem from the Root of your and Mr. Greenspan’s and Mr. Rubin’s penis luvn’ system of economic advisement.
Psst Barack, this team of yours is a FLAWED team, but you are ONLY good at copy-catn’ what other’s have done rather than solid policy-making of ur own. Psst, Barack...copy-catn' Bill Clinton for the 21st century is not going to work! Psst, Barck, you even get the bene of hindsight, but still want Summers and Rubin? How bout bringn' back Greenspan as well?
So…. Barack has got Summer’s back, giving him new life too screw things up again via flawed judgement. So Barack has Summer’s back covered and Summer’s has Barack’s back covered, but…who has America’s back??????
And what women will be the next to call out a coming crisis only to be told by Barack’s TEAM, Shut the Hell up, Woman!
Update:
A Robert Rubin quote on Born pubished in the Oct. 15th in Washtington Post:
"Rubin, in an interview, said of Born's effort, "I do think it was a deterrent to moving forward. I thought it was counterproductive. If you want to move forward . . . you engage with parties in a constructive way. My recollection was, though I truly do not remember the specifics of the meeting, this was done in a more strident way."
FemiSex: Strident. Rubin helped to collaspe the world markets because he didn't like a woman speaking in strident terms. Strident, catch word for any women who refuses to pander to male penis ego. If only the world lost its sexism and strident was not a way to make smart women go AWAY! Strident, the women who gave women the vote, and birth control, and reproductive non-slavery, strident all!
Isn't it REALLY strident to force the world markets to their knees b/c of your fragile male ego? That Rubin is STRIDENT! |
