Why has no one ever been jailed for the CDO/CDS Sept 2008 disaster?
The answer is in the second bankruptcy of a federally backed loan guaranteed corporation in ‘green’ energy.
Obama has ordered an INDEPENDENT, OUTSIDE revue of the serial, irresponsible, most likely corrupt programs, and corrupted processes which underpin our ‘hopes’. There is just ONE TINY PROBLEM.
The administration’s 60-day review will evaluate the department’s multibillion-dollar loan portfolio and make recommendations about improving the monitoring process, according to the White House.
White House Chief of Staff Bill Daley ordered the analysis, which will be led by Herb Allison, a former Treasury Department official who oversaw the Troubled Asset Relief Program.
These people are incapable of conceptualizing the idea of “INDEPENDENT”. To the political class the only people who can intelligently review what is wrong are those who take part in the revolving door of Goldman Sachs - JP Morgan - Citigroup - Columbia - Harvard - Treasury Dept - Fed. They REALLY can see nothing wrong, unethical, immoral or improper about this.
This is NOT a problem of the Obama Admin alone.
For instance, Glenn Hubbard. Dr. Hubbard is the Dean of the Columbia Univsersity School of Economics. Hubbard was in the role of Immelt of GE today, chairman of the council of economic advisors to George Bush, campaign adviser to Romney in 2008. On January 11, 2006, it was announced that he has been tapped to serve on the advisory board of a think tank formed by the Federal Reserve Bank of Dallas to study the impact of globalization on the international economy. Hubbard is a member of the Board of Directors of Automatic Data Processing, Inc., BlackRock Closed-End Funds, Capmark Financial Corporation, Duke Realty Corporation, KKR Financial Corporation and Ripplewood Holdings. He is also a Director or Trustee of the Economic Club of New York, Tax Foundation, Resources for the Future, Manhattan Council and Fifth Avenue Presbyterian Church, New York, and a member of the Advisory Board of the National Center on Addiction and Substance Abuse… Director of MetLife and Metropolitan Life Insurance Company since February 2007.
Hubbard was interviewed in Charles Ferguson’s Oscar-winning documentary film, Inside Job (2010), discussing his advocacy, as chief economic advisor to the Bush Administration, of deregulation, which Ferguson argues led to the 2008 international banking crisis sparked by the collapse of Lehman Brothers and the sale of Merrill Lynch. In the interview, Ferguson asks Hubbard to enumerate the firms from whom he receives outside income as an advisory board member in the context of possible conflict of interest. Hubbard, hitherto cooperative, declines to answer and threatens to end the interview.
He saw NOTHING wrong in what he was doing, and was clearly INCENSED at the hint it was all unethical. No one did. Not Lloyd Blankfein who testified before congress Goldman was shorting the very CDO’s and CDS’s they were actively marketing and selling to other clients, WHOSE FINANCIAL DESTRUCTION WAS PROFIT FOR Goldman, and Blankfein's bonuses or Fred Mishkin who also advised both he govt he served in the FED, the Columbia University Business School, or the companies he took money from to advise and refused to disclose, INCLUDING a paper extolling the virtues of the then leveraged commercial banks of Iceland.
In 2006, Mishkin co-authored a report called “Financial Stability in Iceland”.[3] The report maintained that Iceland’s economic fundamentals were strong. The report was commissioned by the Icelandic Chamber of Commerce in response to critical coverage of the Icelandic economy and certain Icelandic companies in the international business media.[2] Mishkin was paid $124,000 to co-author the report.[4]
Iceland subsequently experienced a spectacular collapse within a year of Mishkin’s report. According to the documentary “Inside Job,” on Mishkin’s curriculum vitae (CV) the title of the report was changed to “Financial Instability in Iceland”. At the present time (March 2011), Mishkin’s CV lists the report with its original title.[5] Mishkin wrote a note published on October 6, 2010 at the Financial Times’ blog [6] titled “The economist’s reply to the “Inside Job”” explaining his participation in the documentary “Inside Job”. The director of “Inside Job,” Charles Ferguson, responded in detail to Mishkin’s note on October 14, 2010 at the same blog.
Mishkin was confirmed as a member of the Board of Governors of the Federal Reserve on September 5, 2006 to fill an unexpired term ending January 31, 2014. On May 28, 2008, he submitted his resignation from the Board of Governors, effective August 31, 2008, in order to resume his revision of a textbook at Columbia Business School.
2 weeks later Lehman Bros went bankrupt.
To the rest of us nothing could be more obvious than that THESE are who the 1% really are. THE FEDERAL GOVT, THE ACADEMICS WHO ADVISE THEM AND BUSINESS FOR MONEY AND THEN MOVE INTO BOTH, AND THE HIGH END FINANCIAL MANIPULATORS WHO THEN SLIDE INTO GOVT AND UNIVERSITIES TO ADVISE BOTH…AND THEN THE GOVT AGAIN WHO MAKES THE RULES THAT MAKE THE UNETHICAL AND IMMORAL LEGAL - who are really ONE.
Organized theft among govt, academia and humongous multinational businesses by making legal what is obviously immoral, and unethical is NOT capitalism.
It is CORRUPTION CAUSED BY GREED, and clearly NOTHING HAS CHANGED.
Any bank too big to fail must be broken down.
No savings bank can be an investment bank.
Banks that wish to engage in real risk, must have very stringent capital reserve rules.
Bonuses for derivative financial products must be paid out throughout the life of the derivatives, NOT AT CONTRACT SIGNING
What is truly ironic is that the left saw a revolutionary socialist in Obama, and so did the right, and it is clear that he DOES believe in the social programs in which this elite knows not best, but almost all.
However it should be clear that he is NO REVOLUTIONARY, for his prescription to fix these structural problems he inherited is to accelerate the very processes which brought us to where we are. He got a shitty load of crap, and then made it immeasurably larger. BECAUSE HE IS ONE OF THEM
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