Posted on 03/24/2009 9:00:17 AM PDT by syriacus
Mr. Greenspans legacy may ultimately rest on a more deeply embedded and much less scrutinized phenomenon: the spectacular boom and calamitous bust in derivatives trading.[snip]
Proposals to bring even minimalist regulation were basically rebuffed by Greenspan and various people in the Treasury, recalled Alan S. Blinder, a former Federal Reserve board member and an economist at Princeton University. I think of him as consistently cheerleading on derivatives.[snip]
Robert E. Rubin, the Treasury secretary then. Treasury lawyers concluded that merely discussing new rules threatened the derivatives market [snip]
In early 1998, Mr. Rubins 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.
(Excerpt) Read more at nytimes.com ...
NY Times article says Greenspan, Summers and Rubin twisted arms to keep derivatives unregulated.
Democrats in Congress went along, as did Republicans and Clinton.
From the article: “Ms. Borns views incited fierce opposition from Mr. Greenspan and Robert E. Rubin, the Treasury secretary then.”
Friends don’t let their friend’s ponzi schemes become exposed. I think Greenspan was a useful idiot in this case with Rubin playing on big Al’s free market sentiments.
A history of the Federal Reserve - the idea before the law - indicates it was created to cement the tie between politicians who love to borrow and bankers who love to lend, and then sold as a cure-all for the perceived wrongs of the business cycle.
Note that the Federal Reserve was created ten years before the great depression, ten years before America’s last great borrowing binge. Also note that while there were booms and busts before the Federal Reserve, they were always of shorter duration, shorter in depth and less “systemic” BEFORE the Federal Reserve.
The “universal” reach of the Federal Reserve insures that IT’s failures ARE more systemic.
Interesting
I hope the truth comes out someday... at least a little of it.
“A history of the Federal Reserve - the idea before the law - indicates it was created to cement the tie between politicians who love to borrow and bankers who love to lend, and then sold as a cure-all for the perceived wrongs of the business cycle.
Note that the Federal Reserve was created ten years before the great depression, ten years before Americas last great borrowing binge. Also note that while there were booms and busts before the Federal Reserve, they were always of shorter duration, shorter in depth and less systemic BEFORE the Federal Reserve.
The universal reach of the Federal Reserve insures that ITs failures ARE more systemic.”
And, it’s run by a cabal of global bankers who are accountable to no one.
“I hope the truth comes out someday... at least a little of it.”
It is out, they know what they did.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.