The Drudge Retort
Warning: Watching this episode of Frontline may (and should) make you sick to your stomach.
“The Warning” is a Frontline episode that aired this evening about derivatives trading and the demise of our economy. The main players were Alan Greenspan, Robert Rubin, and Lawrence Summers — all Ayn Rand disciples who believed that all regulation was bad. They honestly believed that the markets would regulate themselves, even after the Savings and Loan Scandal of the 80s. They even believed that fraud shouldn’t be investigated.
The “warning” was made back in the mid 90s by head of the Commodity Futures Trading Commission, Brooksley Born. The economy appeared to be humming along beautifully. The stock market was soaring. There was a huge surplus of jobs. We even had a balanced budget!
But it turned out, a cancer was growing. It was the completely unregulated derivatives market — a giant, multi-trillion dollar ponzi-scheme. Brooksley Born attempted to alert Congress to the pending disaster but was met with violent opposition by Greenspan, Rubin, Summers, and most of Congress. Not only was she not allowed to regulate the markets, her power to do so was taken away. And the market was further deregulated with the Financial Services Modernization Act of 1999 and the Commodity Futures Modernization Act of 2000 and the
Less than 10 years later, our economy completely collapsed.
According to Ms. Born, this will happen again and again unless there are some new regulations, to which I would add jail sentences, toot de fuckin' sweet.
The still unregulated OTC Derivative scam is starting over again as we speak.
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