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.