Along with Greenspan and Robert Rubin, Obama’s current Council of Economic Advisors Chair Summers formed the Committee to Save the World, according to a Time magazine cover.
The three of them, with Tim Geithner, ran interference to disrupt and frustrate Brooksley Born, then the CFTC Chair, from taking effective action to avert the derivatives morass.
It did not however, stop Born from sounding the alarm enough to get everyone’s attention. Sadly for the US taxpayers, Greenspan, Rubin, Geithner, and especially Summers – who has had issues with women, and maybe a Napoleonic complex to compliment it – did everything he could to politically muscle her around after taking cues from the bank lobby and President Obama and the White House.
Greenspan, Rubin, Geithner, Summers, the bank lobby, former President Clinton, and President Obama are as culpable as any other player involved. They aren’t concerned with Americans. They They will revert to politics before practicality.
This PBS Documentary, The Warning, is one of the best I’ve seen on the government’s role in non-intervention.
For the record, I am for price and volume transparency, standardized margins, and centralized clearing for OTC derivatives.