Brainfade Posted June 15, 2011 Posted June 15, 2011 If you want a really good understanding of how the arrogance of three finance geniuses (Greenspan, Rubin and Summers) set up the collapse of the financial market in 2006/07, watch this PBS Frontline video titled "THE WARNING". It is chilling to see how, under the Clinton administration, the three powerful men gambled, ignored warnings and let the derivative-market bubble grow out of control. In 1998, they postponed (not stopped, but postponed) an impending crisis, but still did not learn their lesson and let the bubble grow even more. In all of this, there was a lone voice of dissent - Brooksley Born - who was summarily ignored, berated and forced to resign for sounding warnings. She has now been vindicated. Finally, when in 2006/07 everything came crashing, Greenspan - the boss - admitted he was wrong. He now lives the good retired life. Rubin - the bulldog - is now working for Citi (or some such Wall Street firm) living the good life. Larry Summers - the enforcer - went on to become Harvard's President, lost his brain-mouth filter and that job, but is now Obama's advisor (very comforting, huh?). http://www.pbs.org/wgbh/pages/frontline/warning/view/
Brainfade Posted June 16, 2011 Author Posted June 16, 2011 I shamelessly admit that I really expected some response to this fascinating topic. I shouldn't have linked a video that gives a perfectly rational explanation for the collapse of the financial bubble without blaming a particular administration. Maybe a sensational Glenn Beck video blaming Clinton for the crisis, or a Nancy Pelosi rant about GWB would've elicited a response :-).
Ram Posted June 16, 2011 Posted June 16, 2011 CA, I started seeing the documentary last night, but it was pretty late in the evening already. I promise to watch the rest of it as well. :nice:
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