Frontline: The Warning

[oddlycalm]

Some interesting history here with the usual excellent Frontline production values. It airs a few more times this week.

Frontline: The Warning (http://www.pbs.org/wgbh/pages/frontline/warning/)

oc

[chop456]

The episode about Afghanistan 2 weeks ago was excellent. One of the few shows on permanent DVR status with me.

That and the Venture Brothers. :D

[Napoleon]

So who was the person who gave the warning? Who ever it was if you have been paying attention over the years there have been various people raising red flags, like ND Sen Dorgon who in 1999 predicted the 1999 Financial Services Modernization Act would lead to massive bailouts of the financial sector (it did), there was that Fed Gov Edward Gramlich, who all until his death in 2007 was issuing warnings, etc. etc. etc.

Think of our economy as the Titanic, except dozens of lookouts spotted the iceberg miles out to no avail since the people up on the bridge were bent on steered the ship in for a closer look.

[oddlycalm]

So who was the person who gave the warning?
Ironically, it was the person whose job it was; Brooksley Born, chair of the CFTC (Commodities Futures Trading Commission) 1996-1999. She laid out exactly what would happen if OTC derivatives were to continue trading unregulated and that's exactly what happened. First with the Long Term Capital meltdown and more recently mortgage backed derivative cataclysm.

oc

[TrueBrit]

The episode about Afghanistan 2 weeks ago was excellent. One of the few shows on permanent DVR status with me.

That and the Venture Brothers. :D

Frontline does proper journalism. The Afghan one was superb as well..as well as their report on Madoff, and...well..you get the idea..

[Napoleon]

Ironically, it was the person whose job it was; Brooksley Born, chair of the CFTC (Commodities Futures Trading Commission) 1996-1999. She laid out exactly what would happen . . .

If I became President tomorrow I would get everyone like her who was a position to try and make a difference in policy who actually raised an alarm and I would give them all an award that would consist of a big honking gold disk that they could wear around their neck Flavor Flav style that would say in the middle of it “I told you so!”

[datachicane]

If I became President tomorrow I would get everyone like her who was a position to try and make a difference in policy who actually raised an alarm and I would give them all an award that would consist of a big honking gold disk that they could wear around their neck Flavor Flav style that would say in the middle of it “I told you so!”

:thumbup:

[Napoleon]

First with the Long Term Capital meltdown . . . .


This is one of these "you have to be kidding" stories but the guy who started LTC tanked his second fund in this crisis and now is opening his third.

http://dealbook.blogs.nytimes.com/2009/10/22/meriwether-embarks-on-third-fund/

http://fridayinvegas.blogspot.com/2009/10/fool-me-thrice-shame-on-both-of-us.html

[oddlycalm]

This is one of these "you have to be kidding" stories but the guy who started LTC tanked his second fund in this crisis and now is opening his third.
Very true, John Meriwether should have been banned for life from the securities business. On the other hand, without naming names, some of the people that were pivotal at the highest levels in setting the stage for the meltdown are still in positions at the highest levels. This is flat out nuts. Bad enough that they were dead wrong, and unrepentant, but much worse is that they swung a heavy ax to block anyone else from making changes to prevent it from happening. :irked:

oc

[Indy]

The guys in charge are gangsters, plain and simple. They are stealing our wealth as fast as they can. That means both parties, by the way.