the committee to save the world. rubin. greenspan. summers. this committee to save the world nearly brought about the end of the world. the financial world at least. these guys worked with democratic president clinton and a republican controlled congress to deregulate the financial market. so the next time someone tells you the republicans or the democrats did this, look them right in the eye and tell them, they all did it. they're all responsible.
there was one lady trying to regulate the derivatives market. brooksley born. pbs frontline ran a show on her last night. she was simply trying to pull the market from the dark. but this committee to save the world wouldn't have it. they knew better. markets are better left alone. she didn't agree. and she wrote a concept release regarding the matter. you can read it here. eventually, she was marginalized and she resigned.
the pbs frontline can be seen here.
here is a playground analogy regarding the financial mess.
greenspan has retired as head of the fed. rubin went on the help make citibank one of the biggest receivers of federal bailout money. and summers is back in government with our current president. apparently he is now in favor of more regulation.
but there are people in the administration calling for more regulation. paul volcker is. but does he go far enough? that is a question raised here at naked capitalism.
and more importantly: does he have the president's ear? the new york times discusses that question.
there's a line a broken social scene song that goes, "don't get high on what you create." and that is applicable here. these problems existed before. these problems helped stir up the beginnings of the great depression. but we created a better, more fluid financial system, right? those problems won't be our problems again, right? we're smarter now. information is abundant. it won't happen again, right?
don't get high on what you create.
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