Dick Fuld sends email from spiderhole/ Who is to blame for this mess?

[CA renter]

IMO, many parties are complicit, but the main villain is Greenspan.

Over the years, he encouraged extreme risk-taking by bailing everyone out after each crash or negative financial event.

What we see today — the taxpayers’ on the hook for the risk that enabled Wall Street to have record profits — is a direct result of Greenspan’s policies.

Additionally, Greenspan sought to fight deflation at every turn, which kept the market from experiencing the necessary cleansing that keeps growth in check and minimizes misallocation of resources and gross financial distortions (bubbles).

He could have lowered rates (though did not need to) back in 2001-2003 but added a cautionary note with regard to bubble excesses. He could have honestly noted the parabolic move in the credit markets and warned everyone about the potential for a housing bubble. He could also have mentioned that it was STUPID for people to use adjustable-rate mortgages when rates were at multi-decade lows. He could have encouraged regulations that would have prevented the most egregious types of mortgages from ever coming to market.

He is the captain of this sinking ship, but saw what was happening so he “retired” and left his $h!t for someone else (Bernanke) to clean up.

I have a notion he is NOT stupid and this did NOT happen by accident. Lots of money was made by people who are long gone and sitting on an island or yacht right now.

[Wickedheart]

Basically none of this could have happened without the repeal of the Glass-Steagal Act which separated Commercial Banks from investment banking. So here’s my list:

1) Citibank who has spent the last 30 years trying to repeal the Glass-Steagal Act. In 1998 Citi was trying to merger with Travellers which was illegal under the Glass-Steagall Act. The merger was approved in 1998. Which was by the way illegal since the repeal of Glass-Steagal didn’t happen until Nov of 1999.

2) Senator Phil Gramm (R), the guy who just recently called americans a bunch of whiners. Actually Phil should be numero uno, considering his role in this mess.

3)Senators Leach and Biley (R)
The Gramm-Leach-Biley Act

All of the above were responsible for the repeal of the Glass-Steagall Act.

4)The Republican Congress in power at the time

5)President Bill Clinton who threatened to veto the bill until it was rewritten so minorities and farmers could get screwed too.

6) Clintons Secretary of the Treasury Robert Rubin who resigned just days before the Gramm-Leach-Biley act and went to work for Citigroup for $40 mil. By the way he still works for Citigroup today.

7)President Bush

8)Alan Greenspan

9) lobbyists

10) the Fed

[Wickedheart]

Basically none of this could have happened without the repeal of the Glass-Steagal Act which separated Commercial Banks from investment banking. So here’s my list:

1) Citibank who has spent the last 30 years trying to repeal the Glass-Steagal Act. In 1998 Citi was trying to merger with Travellers which was illegal under the Glass-Steagall Act. The merger was approved in 1998. Which was by the way illegal since the repeal of Glass-Steagal didn’t happen until Nov of 1999.

2) Senator Phil Gramm (R), the guy who just recently called americans a bunch of whiners. Actually Phil should be numero uno, considering his role in this mess.

3)Senators Leach and Biley (R)
The Gramm-Leach-Biley Act

All of the above were responsible for the repeal of the Glass-Steagall Act.

4)The Republican Congress in power at the time

5)President Bill Clinton who threatened to veto the bill until it was rewritten so minorities and farmers could get screwed too.

6) Clintons Secretary of the Treasury Robert Rubin who resigned just days before the Gramm-Leach-Biley act and went to work for Citigroup for $40 mil. By the way he still works for Citigroup today.

7)President Bush

8)Alan Greenspan

9) lobbyists

10) the Fed

[Wickedheart]

Basically none of this could have happened without the repeal of the Glass-Steagal Act which separated Commercial Banks from investment banking. So here’s my list:

1) Citibank who has spent the last 30 years trying to repeal the Glass-Steagal Act. In 1998 Citi was trying to merger with Travellers which was illegal under the Glass-Steagall Act. The merger was approved in 1998. Which was by the way illegal since the repeal of Glass-Steagal didn’t happen until Nov of 1999.

2) Senator Phil Gramm (R), the guy who just recently called americans a bunch of whiners. Actually Phil should be numero uno, considering his role in this mess.

3)Senators Leach and Biley (R)
The Gramm-Leach-Biley Act

All of the above were responsible for the repeal of the Glass-Steagall Act.

4)The Republican Congress in power at the time

5)President Bill Clinton who threatened to veto the bill until it was rewritten so minorities and farmers could get screwed too.

6) Clintons Secretary of the Treasury Robert Rubin who resigned just days before the Gramm-Leach-Biley act and went to work for Citigroup for $40 mil. By the way he still works for Citigroup today.

7)President Bush

8)Alan Greenspan

9) lobbyists

10) the Fed

[Wickedheart]

Basically none of this could have happened without the repeal of the Glass-Steagal Act which separated Commercial Banks from investment banking. So here’s my list:

1) Citibank who has spent the last 30 years trying to repeal the Glass-Steagal Act. In 1998 Citi was trying to merger with Travellers which was illegal under the Glass-Steagall Act. The merger was approved in 1998. Which was by the way illegal since the repeal of Glass-Steagal didn’t happen until Nov of 1999.

2) Senator Phil Gramm (R), the guy who just recently called americans a bunch of whiners. Actually Phil should be numero uno, considering his role in this mess.

3)Senators Leach and Biley (R)
The Gramm-Leach-Biley Act

All of the above were responsible for the repeal of the Glass-Steagall Act.

4)The Republican Congress in power at the time

5)President Bill Clinton who threatened to veto the bill until it was rewritten so minorities and farmers could get screwed too.

6) Clintons Secretary of the Treasury Robert Rubin who resigned just days before the Gramm-Leach-Biley act and went to work for Citigroup for $40 mil. By the way he still works for Citigroup today.

7)President Bush

8)Alan Greenspan

9) lobbyists

10) the Fed

[Wickedheart]

Basically none of this could have happened without the repeal of the Glass-Steagal Act which separated Commercial Banks from investment banking. So here’s my list:

1) Citibank who has spent the last 30 years trying to repeal the Glass-Steagal Act. In 1998 Citi was trying to merger with Travellers which was illegal under the Glass-Steagall Act. The merger was approved in 1998. Which was by the way illegal since the repeal of Glass-Steagal didn’t happen until Nov of 1999.

2) Senator Phil Gramm (R), the guy who just recently called americans a bunch of whiners. Actually Phil should be numero uno, considering his role in this mess.

3)Senators Leach and Biley (R)
The Gramm-Leach-Biley Act

All of the above were responsible for the repeal of the Glass-Steagall Act.

4)The Republican Congress in power at the time

5)President Bill Clinton who threatened to veto the bill until it was rewritten so minorities and farmers could get screwed too.

6) Clintons Secretary of the Treasury Robert Rubin who resigned just days before the Gramm-Leach-Biley act and went to work for Citigroup for $40 mil. By the way he still works for Citigroup today.

7)President Bush

8)Alan Greenspan

9) lobbyists

10) the Fed

[davelj]

Greenspan, et al 40%
Greedy Idiotic Sheeple 25%
Regulatory Bodies 20%
Wall Street 15%

I put Wall Street fourth on the list because Wall Street must be enabled by the first three in order to get itself into the trouble in which it finds itself.

[davelj]

Greenspan, et al 40%
Greedy Idiotic Sheeple 25%
Regulatory Bodies 20%
Wall Street 15%

I put Wall Street fourth on the list because Wall Street must be enabled by the first three in order to get itself into the trouble in which it finds itself.

[davelj]

Greenspan, et al 40%
Greedy Idiotic Sheeple 25%
Regulatory Bodies 20%
Wall Street 15%

I put Wall Street fourth on the list because Wall Street must be enabled by the first three in order to get itself into the trouble in which it finds itself.

[davelj]

Greenspan, et al 40%
Greedy Idiotic Sheeple 25%
Regulatory Bodies 20%
Wall Street 15%

I put Wall Street fourth on the list because Wall Street must be enabled by the first three in order to get itself into the trouble in which it finds itself.

[davelj]

Greenspan, et al 40%
Greedy Idiotic Sheeple 25%
Regulatory Bodies 20%
Wall Street 15%

I put Wall Street fourth on the list because Wall Street must be enabled by the first three in order to get itself into the trouble in which it finds itself.

[sdduuuude]

[quote=esmith]
Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.[/quote]

I hate to tell you this, but that isn’t the free-market/deregulation crowd, no matter what they say.

[sdduuuude]

[quote=esmith]
Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.[/quote]

I hate to tell you this, but that isn’t the free-market/deregulation crowd, no matter what they say.

[sdduuuude]

[quote=esmith]
Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.[/quote]

I hate to tell you this, but that isn’t the free-market/deregulation crowd, no matter what they say.

[sdduuuude]

[quote=esmith]
Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.[/quote]

I hate to tell you this, but that isn’t the free-market/deregulation crowd, no matter what they say.

[Author]

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