Tag: financial crisis
"Larry Summers and I were both on the side of 'we need a more definitive clean-up of the financial system.' And the question was if somebody, you know, really wasn't solvent, do you need the government to put in capital, realize the losses, clean it up, and then put it back into private hands?" - Christina Romer, White House Economic Advisor 2009 - 2010
Any serious study of this administration's policies reveals a most pragmatic response by Obama at almost every turn. From the selection of Treasury Secretary Tim Geithner and many other establishment appointees, to the decision not to seize or take the banks to the woodshed, Obama has erred on the side of caution and market reassurance rather than a confrontation with forces that would flirt with a stalemate leading to economic stagnation or catastrophe. It is essential that the story be told clearly and that we rely on the accomplishments. That looks to be the approach the Obama campaign will employ based upon the message from the campaign thus far. The facts are more than embarrassing for the right's apologists.
Yet another reason for Republicans to attack public broadcasting: Frontline's series: Money, Power, and Wall Street is helping set the record straight. Incompetence, malfeasance, and reliance on an economic philosophy that rationalizes policy rather than providing safeguards against illegitimate market action are the underlying themes. All of this complements of Republican and private sector influence.
The first episode of this "Election 2012 Special Event" provides an engaging glimpse into the development of a new unregulated market in the securities sector built on an instrument that spread like poisonous kudzu throughout the financial world. From humble beginnings at JP Morgan in an effort to abate the risk exposure to an Exxon line of credit following the Exxon-Valdez disaster, credit default swaps (a kind of derivative that insures a loan against default) became common instruments even in the predatory lending galaxy, usually insulated and isolated in the legitimate financial universe. The stage was set.