Amazing - Greed-span Almost Tells the Truth

[abduLMaria]

http://www.bloomberg.com/apps/news?pid= ... uA8w&pos=2

" March 19 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said the central bank and other U.S. regulators "failed" during the financial crisis because they became too complacent about risks.

"Even with the breakdown of private risk-management, the financial system would have held together had the second bulwark against crisis -- our regulatory system -- functioned effectively," Greenspan said in a speech at a Brookings Institution conference in Washington today. "But, under crisis pressure, it too failed."

Greenspan echoed comments he made in a paper released yesterday citing the central bank's failures to rein in the housing bubble and growth of the largest U.S. banks. Greenspan, 84, who ran the central bank from 1987 to 2006, said low interest rates weren't to blame for inflating the bubble, placing the blame instead on regulators.

"Even though for years our largest 10 to 15 banking institutions have had permanently assigned on-site examiners to oversee daily operations, many of these banks still were able to take on toxic assets that brought them to their knees," Greenspan said."


Hell has Frozen Over.  A Jewish Banker Almost told the truth.

He didn't say anything about him & Rubin telling the lead Credit Derivatives regulator, Brooksley Born, to back off.

She was VERY concerned about the potential for credit derivatives to wreak havoc via counterparty risk.  She moved to investigate - GreeDspan, Summers, and Rubin were the rock wall standing in her way.

This is during the Clinton administration.  Of course Clinton also signed the 2 bills that loosened up all the Depression-era laws put in place in the 1930's.

Still, I never expected GreeDspan or any Jewish banker to come this close to saying, "we screwed up".


One of the things GreeDspan told Born, the CFTC (Commodities Futures Trading Commission) head, was, "The markets will take care of fraud".

Well, as we all witnessed recently, the US taxpayer got stuck with the bill.  The banksters, Jewish & otherwise, escaped with many $trillions in profits.  They made much more money "on the way up" - 1995 to 2007 - than was lost in the time-frame 2007 to present.

In other words, the Zio-banksters made off with $trillions - and the largely non-Jewish US taxpayer got stuck with the bill.

The markets did not take care of fraud.

In the Middle Ages, the Jewish population was expelled from host countries for far less.


One of the stats that came out in an article on Bloomberg about a year ago was that the top 30 earning hedge fund managers averaged $500 million a year income in 2007.

[ahaze]

Right, and "Frontline" on pbs.org has a great documentary titled "The Warning" which covers the unfolding of these very events surrounding Brooksley Born facing off against Greenspan, Rubin, and Summers back in the late '90's.  "The Warning" does an excellent job demonstrating Greenspan's obsession with Ayn Rand, and how Brooksley Born came to the head of the CFTC to discover foul smells emitting from the derivatives black box.  The Frontline documentary exposes how Born rose to the defense of the American People only to get strong armed by Rubin, Summers, and Greenspan who coerced Congress into shutting her down.  And then right on the heels of that coup,  Long Term Capital Management melted down for precisely the reasons Born had suspected but the time bomb persisted with its rubber stamp.

"The Warning" further illuminates by showing how Timothy Geithner was top deputy for Rubin, how Larry Summers is still in there with Obama today, and Rubin is quietly pulling strings for Citigroup.  Basically the take away I get from "The Warning" is that the time bomb is still in the early stages of going off and there's still yet more hell to pay.  I think the show is at least worth a watch for observing psychopathic behavior Greenspan demonstrates, and for seeing his flaccid admission's he's a failure.

"The Warning" can be streamed online and here's the link to the transcript.  "The Warning"

Rep. HENRY WAXMAN (D), California: [October 23, 2008] You have been a staunch advocate for letting markets regulate themselves. And my question for you is simple. Were you wrong?

ALAN GREENSPAN: Yes. I found a flaw, but I've been very distressed by that fact.

Rep. HENRY WAXMAN: You found a flaw in the reality.

ALAN GREENSPAN: Flaw flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak.

Rep. HENRY WAXMAN: In other words, you found that your view of the world, your ideology, was not right.

ALAN GREENSPAN: Precisely. No, that's precisely the reason I was shocked because I've been going for 40 years or more with very considerable evidence that it was working exceptionally well.