Go-Go-90s: Crackpot! (2 of 3 – Great Video)
** Oct 3, 2011: I am re-posting this Feb 2010 post for more light **
Yes, the former Federal Reserve Board Chairman, Greenspan is a crackpot! For over a dozen years, I was passionately making this case to anybody who cared to listen. Even today at lunch, my colleagues were joking with me about how much I loved Greenspan.
In part 1 of this three-part article, I have cued you in for a great (PBS) Frontline Video. Before you watch the video, I want to give you some intro to Greenspan’s crackpot theories:
This video features the go-go-90s during which the follies of Greenspan, Rubin, Summers, Phil Grahm and the US Congress have contributed to the build up of housing bubble; and proliferation of totally unregulated derivatives and the. Not until the financial system of the western economies were brought to their knees due to the popping of the bubble and the implosion of derivatives, has anybody paid any attention to people with common sense or regulators with vision. This Frontline video mainly features an unsung hero, Ms. Brooksley Born with such vision and her fight against Wall Street corruption and the crony capitalism of the “powers that be” at that time.
Here are some (loose) quotes from the video:
At her first meeting with Greenspan, he said something to the effect “You probably think that there should be rules against fraud….. The market will figure it out.
“Greenspan didn’t believe that fraud is something that should be regulated.”
Larry Summers: “You don’t get it. You are going to cause the worst financial crisis since World War 2.” [Editorial insert: She didn’t, he did.]
“In Washington, the financial sector has 5 lobbyists for every congressman” [May be even more now]
“Rubin, Greenspan and Summers have a great deal of faith in their intellect.”
“The market is God, it will punish the fraudsters.”
Bankers Trust brokers, “We set’em up.” “Ha Haa. These idiots really think that this is all in their best interest. huh huh. It is not. It is probably going to clean their clock.” [About P&G]
I voted for Obama and I loved the fact that Volker and Buffet advised him during the campaign. The moment I saw Summers on Obama’s economic team, Obama lost me. Now, a year into Obama’s administration – with Summers, Giethner and Bernanke at the helm of the economic team, I now say, “God help the US economy! The next disaster will be absolutely horrendous.”
How much of a crackpot Greenspan really is? The video speaks for itself. (It is 55 minutes and every minute of your watching this video is worth it.) Educate yourself!!!