And the Blame Game Continues
And on it goes...
In the uproar over the AIG bonuses finger pointing has become an art form. Who knew what and when? Who added what to which bill and why? How dare they (AIG) use bailout money for bonuses (and give some to their partner banks while they were at it)!?!!
And yet when the President was out and about this past week traveling hither and yon the folks asking him questions didn't mention AIG, unless they were members of the media. Could it be that the average person is more concerned about the state of their own household "economy" than AIG? Or do we all simply have burn out? I'm thinking it is a bit of both.
Heard an interesting story on NPR that cast some of the blame for the mess we're in WAY back to the Commodities Futures Modernization Act of 2000. Hmmm, that wasn't this Administration then was it? Lots of the same people were in Congress then though weren't they?
You see, these lovely derivatives (such as credit default swaps) that sent the market into such a tailspin, never got on the regulation wagon thanks to this Act, the theory being that this Act would open up the derivatives market and allow it to grow. And did it ever! It went for a wild ride, everybody (big banks) ran around and scooped up what we now call toxic assets and voila! when the market "adjusted" this past year WHAM! we landed here. Thanks to Congress and the need to make a fast buck.
Funny thing? In the late 1990's one voice crying in the wilderness said these things needed to be regulated. But of course no one listened, Congress passed the Act here we are today looking a potential second "great" depression in the face.
That voice? Brooksley Born, then Chair of the Commodities Futures Trading Association whose concerns apparently Alan Greenspan poo-pooed. Check out the article in the Times
In 1998 she proposed that such commodities be regulated and like Cassandra at Troy, no one listened to her. Newsweek has been following this story of course and it was Michael Hirsh of Newsweek on NPR yesterday that brought Ms. Born's concerns to my attention.
I'm going to continue to research this puppy (hey, everyone needs a hobby) but right now it seems to me that the blame for this mess lies directly in the lap of Congress.
Now isn't that a surprise?
In the uproar over the AIG bonuses finger pointing has become an art form. Who knew what and when? Who added what to which bill and why? How dare they (AIG) use bailout money for bonuses (and give some to their partner banks while they were at it)!?!!
And yet when the President was out and about this past week traveling hither and yon the folks asking him questions didn't mention AIG, unless they were members of the media. Could it be that the average person is more concerned about the state of their own household "economy" than AIG? Or do we all simply have burn out? I'm thinking it is a bit of both.
Heard an interesting story on NPR that cast some of the blame for the mess we're in WAY back to the Commodities Futures Modernization Act of 2000. Hmmm, that wasn't this Administration then was it? Lots of the same people were in Congress then though weren't they?
You see, these lovely derivatives (such as credit default swaps) that sent the market into such a tailspin, never got on the regulation wagon thanks to this Act, the theory being that this Act would open up the derivatives market and allow it to grow. And did it ever! It went for a wild ride, everybody (big banks) ran around and scooped up what we now call toxic assets and voila! when the market "adjusted" this past year WHAM! we landed here. Thanks to Congress and the need to make a fast buck.
Funny thing? In the late 1990's one voice crying in the wilderness said these things needed to be regulated. But of course no one listened, Congress passed the Act here we are today looking a potential second "great" depression in the face.
That voice? Brooksley Born, then Chair of the Commodities Futures Trading Association whose concerns apparently Alan Greenspan poo-pooed. Check out the article in the Times
In 1998 she proposed that such commodities be regulated and like Cassandra at Troy, no one listened to her. Newsweek has been following this story of course and it was Michael Hirsh of Newsweek on NPR yesterday that brought Ms. Born's concerns to my attention.
I'm going to continue to research this puppy (hey, everyone needs a hobby) but right now it seems to me that the blame for this mess lies directly in the lap of Congress.
Now isn't that a surprise?
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