Just in case you missed the link in the Center for Media Democracy article yesterday, I wanted to highlight it here:

http://video.pbs.org/video/1302794657/

It’s really important to revisit what happened and who was responsible….so it doesn’t happen again.  We are STILL paying for Greenspan’s idolatry of Ayn Rand…

Bluntly, bankers can’t be trusted to tell the truth.  They cannot be trusted to regulate themselves.  Ain’t gonna happen.  By nature, bankers are greedy and see everything in dollar signs, and as this piece illustrates, if they think they can get away with something, they won’t let ethics or concerns for democracy get in the way.

The subtext to this story is how Brooksley Born was ignored.  A woman not taken seriously….a narrative of sexism.  It’s interesting that she refused to talk about her meeting with Bill Clinton…makes me wonder if he tried to get in her pants and then called her ‘boring” because she refused…or perhaps he was intimidated because she was not only intelligent but principled, as well.  Bill probably doesn’t “get” principled people…sharks only understand other sharks….

This on Phil Gramm, who….wait for it….joined a banking firm after aiding the financial meltdown.   And afterward, calling us “a nation of whiners”…um-hmmm….

Frank Partnoy, a law professor at the University of San Diego and an expert on derivatives, said, “No one, including regulators, could get an accurate picture of this market. The consequences of that is that it left us in the dark for the last eight years.” And, he added, “Bad things happen when it’s dark.”

In 2002, Mr. Gramm left Congress, joining UBS as a senior investment banker and head of the company’s lobbying operation.

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Another subtext is the intimidation by those involved.  They created derivatives to be confusing on purpose…and counted on the others to be too embarrassed to ask the question “what does this mean”? Here we have a law professor who understands derivatives, and HE was in the dark about them.

People are intimidated and don’t want to say “I don’t understand”.  I used to be that way, but no more.  Ask away, folks.  Ask away.  And if someone makes you feel stupid by being condescending, then call them on it.  There are some really smart people out there, but nobody knows everything.   And you aren’t going to learn (and understand) anything if you don’t ask questions. If more people had asked questions and raised concerns like Brooksley Born, the financial collapse would have been averted.

More on the ethics of Gramm here.

And here.