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| Jun 22, 2009 5:54 pm |
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re: Causes of the World Financial Meltdown? |
Thomas Holford
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John sayeth:
(Quoting William Greider)
> The regulatory system was ... systematically gutted and dismantled by the government in Washington at the behest of the banking interests. If Obama wants details, he can consult his economic advisors--Summers-Geithner--who participated directly as accomplices in unwinding the prudential rules and regulations. Cheers were led by the Federal Reserve with heavy lifting by both political parties.
> If Obama were to tell the truth now about what went wrong in the financial system, he would face a far larger political problem trying to clean up the mess.
> Congress doesn't much want to face the music either. In the long run, [this neglect] will haunt the country because it fails to confront the true nature of the disorders.
> Asking the cloistered Federal Reserve to resolve all the explosive questions about the over-reaching power of financial institutions is like throwing the problem into a black box and closing the lid, so people will be unable to see what happens next. ... Give the mess to the Wizard of Oz, the guy behind the curtain. He can do miracles with money, but don't watch too closely. This constitutes the high politics of evasion.
Notwithstanding that this appeared in the crazy leftwing looney bin Nation magazine, I don't know that I necessarily disagree with any of it. (I feel like a cheap and dirty sell-out).
I also like the analysis of Thomas Woods in his book "Meltdown", in which he places the biggest part of the blame on the Federal Reserve and it's fiat money system.
Woods also blames the cheap credit policies which kept interest rates down, expanded the money supply, and fundamentally caused the economy's unstable "boom and bust" cycles.
Political stupidity, opportunism, corruption, and perfidy on the part of people like Franklin Roosevelt, Harry Truman, Jimmy Carter, Bill Clinton, Franklin Raines, Jameie Gorelick, Chris Dodd, Bawney Fwank, etc. etc. just made things worse.
I'm sure there were Republicans, too, who joined in the orgy, but Republican politicians tend to be followers who just want to get along and do what the Democrats do, just not so much of it.
I'm also sure that people will be writing books and explaining the financial debacle for decades, and there will be a large buffet of conspiracy theories and villains to choose from.
Thomas Holford
Private Reply to Thomas Holford (new win) |
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