Wednesday, February 17, 2010

The Future Does Not Look Very Bright


Last night, one of my brothers called to tell me to watch FRONTLINE on one of the PBS channels at 9 pm. The name of the program was THE WARNING. Not only did I watch the program at 9, but I watched it again at 10 because there was so much information and I wanted to process it all.

The program was about a woman lawyer by the name of Brooksley Born, who President Clinton had appointed to chair the Commodity Futures Trading Commission (CFTC). For the next hour, I watched how Fed Chairman Alan Greenspan, Treasury Secretary Robert Rubin and economic adviser Larry Summers worked to stop her from advising of the coming disaster in the derivative market and ultimately to shut her down as the Chairperson of the CFTC. When Congress shut her down, she resigned. President Clinton, as smart as they say he is, did not understand what was happening in the derivatives market and went along with his money advisers. This disaster really got started under the idiot savant Alan Greenspan.

After watching this program, and giving it some thought, I don't believe we are going to see any meaningful change in the way the investment banking and investment securities industry is going to conduct their business. As I have stated before, we are all headed back down that same road again, and it is going to lead to another financial crisis. There is just too much power and money on Wall Street and Washington for me to believe that the necessary changes, with regards to regulations of derivative trading, are going to be implemented for the good of our whole economy.

At this point in time, I do not think President Obama knows enough to fight his advisers like Geithner and Summers with regards to the needed regulations on Wall Street and the trading of derivatives. They were around when Brooksley Born was bashed for her attempts to save us all from the financial crisis that this nation came to absorb, and I do not believe they, President Obama's advisers, are the right people to stand up to Wall Street.

I am afraid that we will see much worse before things will get better, and there is the chance that the greed on Wall Street and Washington will bring this country down. In the end, it will be the enemy within, not an external enemy that will bring this country down.

Stay tuned.

5 comments:

Julie Schuler said...

I have only the hope that we can carve out some little niche in this country to live out our days. Since my husband lost his job- almost two years ago!- he has tried sales and that hasn't worked, he's applied for countless jobs with no replies, and now he is going to take a test for census work. The house is gone, we are just squatters here until the paper work is sorted out (but at least that will take six months!) I intend to rent some little place in my hometown where I can at least be of use to my family, my mother is aging and needs help. I hope that my children will eventually see our former standard of living regained (which wasn't exactly elegant, but it was secure. I don't know if I ever will, and I am only 35.

moneythoughts said...

Unfortunately Julie there are millions of families like yours, and while I believe President Obama and some of the people around him are very concerned about families like yours, the power and money in this country are lined up on the other side.

I can understand the anger of the people, but I don't blame President Obama, yet. He has to play ball with many powerful interests first, and then try and see what he can get for the rest of the people. Again, unfortunately, the voters are too often sidetracked by issues that have nothing to do with jobs, housing or health care. Social issues have been used effectively to keep the real frauds perpetrated on the American people from being dealt with properly.

There is a lot of serious wrong doing going on in the world of finance and at this point, I am not sure that the President of the United States can get a handle on it or stop it.

I wish you and your young family better luck in 2010.

Julie Schuler said...

I feel like I'm in that Simpsons Halloween episode where Bart and Lisa are standing there, waiting to get pushed into the giant blender and they say "Surely someone will come along and rescue the adorable Simpson children" but substitute "Schuler Family" for "Simpson children". I know a lot of people probably felt the same way and are now living in a tent, or in their cars. Still, with everything that has happened, we count ourselves very lucky.

winslow said...

I come in contact every day with individuals and families that have no medical insurance through no fault of their own. It pains me to see this is how America really is. The people blasting Obama for "trying" to change our health care system; these people all have adequate insurance, probably employer provided at low cost.

Here is an interesting aside:
McCain was asked why can't Congress work together like adults and solve our problems with compromise. His response was "we could not get re-elected if we did that".

Robert said...

World falling apart just in time for retirement of post war baby boom generation.

I hope I am reincarnated into the better world that should emerge after this train wreck. At the same time, I hope something still averts the train wreck for this life.

At least so far, my life has been a good niche living in a small room, having no family and working a low wage, but low stress job.

My job as a custodian is close to where I live. I have no car, but lots of good friends, discussion groups; both on-line and face to face locally. I have dancing, learning and bicycling.

So far, OK, but my life has never been very mainstream.