Every once in a while, in a great while, a bit of sanity shines through.
We have said before that no Fed Chair was ever “free market.” This absolutely includes Mr. Greenspan. His legacy is one of a price fixer, an economic manipulator, a bubble blower, and ultimately one who in many ways ushered in the crony era we live in today.
But as we see in the attached piece from Sebastian Mallaby, Allan Greenspan, the one time “Maestro,” knew better all along. He knew that Fed policy could and typically did destabilize the real economy.
“FRAUD has never, ever worked…Eventually things go south…When the hell did we forget all that?”
2008. I’ll never forget. EVER.
I won’t go into why this movie speaks to me so much. I will say however that it isn’t because I had billions on the line.
This is from 2011 when the wounds of the Crash were still fresh.
Now we’ve been conditioned. Time has passed and the banks want you to forget what happened and the dull economic pain which still dogs the world.*
We at ACC will never forget.
At the end of this video is a very short ad for someone who was running for Congress. We do not endorse candidates ever. We don’t know who this person is.
There are times, not all that often, when as I read a headline I just kind of sigh. This was one of those headlines.
This isn’t capitalism folks. This is crony capitalism straight up with no chaser on a massive scale. And it is sold as being for YOUR benefit.
The bank bailouts in 2008 left a bitter residue which even now, 7 years later (7 years!) I can taste. I spit it out, but it always lingers. If I meditate too long on that time, that time of foreclosures, and panic, and of George Bush “abandoning capitalism to save free market capitalism,” of weekend meetings at the Fed, of Hank Paulson playing God, my blood pressure still rises. It was such a tremendous scam on such a gigantic scale.
Time to dust these off?
David Stockman asks this question, though he knows the answer.
Oh no. Are the barbarians breaching the castle walls?
Surprise, Hank Paulson thinks the rabble, now empowered by new media, are counter productive to the great “debate” the country is having. Better to leave it to the Masters of the Universe like him.
Bipartisanship – for Wall Street.
Washington made a decision 5 years ago to abandon most Americans and to cozy up with the crony capitalists on Wall Street. They rejected the voice of the American people in the Fall of 2008 when they began the bailout bonanza.
The key is not to bat an eye and to act like everything is cool. Be unapologetic but low key key and the serfs will eventually put away their pitchforks.
And by poorly managed banks we mean pretty much every big bank on the planet. For instance we now know that nearly half a trillion from the United States Federal Reserve was GIVEN to foreign banks. Given to them. Not even loaned at a penalty rate. Just given. How many people lost their homes now? But half a trillion was just handed to banks which aren’t even nominally “American.”
Robert Lenzner at Forbes would like to know about a few things.
(But don’t worry, Cyprus was an exceptional case.)
The article goes on to say that the bailout of Fannie Mae and Freddie Mac was good because it helped buoy the housing markets. It does say that the bailouts were not free of cost however because of the moral hazard the US government has enabled.