DVR ALERT: “FRONTLINE: THE WARNING”, AN INVESTIGATION INTO THE 2008 COLLAPSE…

Posted on October 23, 2009. Filed under: TV and Radio... |

 
This is something you need to watch!  It will be on Channel 2 (PBS) tonight (Friday) from 10-11 PM ET and also on Sunday, October 25th from 2:30-3:30 PM ET if you prefer to watch it on TV, or watch it online"Frontline:  The Warning"
 
Here’s Brooksley Born’s Bio if you don’t know who she is…Brooksley Born Bio
 
This documentary is an investigation into the roots of the 2008 economic meltdown which features the story of former Commodity Futures Trading Commission Chairperson, Brooksley Born, whose repeated warnings in the late 1990s that the derivatives market needed to be regulated, went unheeded by Bill Clinton during the Clinton Administration, Alan Greenspan, Timothy Geitner, Bob Rubin and Larry Summers, among others.
 
When Born was a lawyer, she was interviewed by Bill Clinton for the Attorney General position.  Bill Clinton viewed Born as "boring" and appointed Janet Reno instead—big mistake on his part.
 
Alan Greenspan, Bob Rubin and Larry Summers were, according to a Time Magazine cover, "The Committee To Save The World", who were determined to "shut her down and shut her up" because at the time, Greenspan didn’t think fraud should be policed, but Born did, and now you know how that played out.
 
After you view this documentary, you will see why our government intentionally complicates laws that nobody understands in order to pass them (think Bankers Trust vs. Proctor & Gamble’s lawsuit).  At a hearing on Capital Hill—one of many—Sen. Phil Gramm, R-TX, during 1985-2002, stated, "I see no evidence that this is a troubled market, that fraud is rampant"the same Phil Gramm who played a leading role in writing and pushing through Congress the 1999 repeal of the Depression-era Glass-Steagall Act (which I have blogged at length about), which separated commercial banks from Wall Street.  He also inserted a key provision into the 2000 Commodity Futures Modernization Act that exempted over-the-counter derivatives like credit-default swaps from regulation by the Commodity Futures Trading Commission.  Credit-default swaps took down AIG, which has cost the U.S. $150 billion, thus far.
 
Six weeks later, Born’s warnings became reality.  When Long-Term Capital Management (LTCM), a U.S. Hedge Fund, was collapsing, the Wall Street banks were pressured by the FED to bail out LTCM themselves.  The government warned Wall Street that their financial stability was in jeopardy so they each had to fork over $400M to buy the Fund$3.5B helped to divert a collapse.  Too bad Obama didn’t instruct Wall Street to bail themselves out instead of taking billions from us to cover their corruption.
 
On October 1, 1998, Alan Greenspan stated that the collapse of LTCM was "not indicative of dangers in the market."  He said it was important not to introduce regulations.  Congress agreed with him that there would be no regulations for over-the-counter derivatives, so it stayed an unregulated market.  To stop Born from further interfering, even though she was right all along, they declared a regulatory freeze on her agency instead of the derivatives, which forced her to resign.  It’s clear that if these derivatives were regulated during the Clinton administration as Born suggested, most of our economy’s collapse would have been avoided.  I also blogged about Clinton’s contribution toward the economic meltdown as well.  So if you want to point fingers, they should be pointing toward the Democrats as I had pointed out in previous posts.
 
After the collapse, Bob Rubin left to go to CitiBank, a failed bank that received more than $100B in taxpayer dollars.  Timothy Geitner and Bob Summers went on to join the Obama administration as his chief financial advisorsboth of whom declined to speak to Frontline about Brooksley Born.  Chances are, Frontline will probably go on Obama’s growing enemy list along with Fox News, if Anita Dunn, White House Communications Director, has anything to say about it.  Rubin’s top deputy, Gary Gensler, now holds Born’s former position at the Commodity Futures Trading Commission.  Greenspan retired just before the crisis hit.  Isn’t that just swell for these corrupt and mindless pigs!
 
What worries me the most is that the Obama administration has pledged an overhaul of the financial system, including the way derivatives are regulated.  How could he possibly do this when his financial team includes some former Treasury officials who were so opposed to Born a decade ago?  I hope voters remember this when they go to the polls in 2010, and more importantly, in 2012…
 
QueenBee
 

 

 
 
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