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Lords of Finance : the bankers who broke the world

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Published : July 02nd, 2012
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( 4 votes, 4.8/5 ) , 4 commentaries
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Category : Editorials





Liaquat Ahamed, author of Lords of Finance, The Bankers Who Broke the World, discusses the parallels between the Great Depression and the Financial Crisis of today at The American Academy of Berlin.

I concur heartily with Mr. Ahamed on the primary causes of the bubble and collapse, especially with regard to the enormous policy errors of the Greenspan Fed.

But I always find it annoying that the conscious, widespread fraud that was promoted by Wall Street, both in 1929 and in the most recent crisis, is rarely discussed as the major corrupting influence that distorted both economic and monetary policy and the real economy.

I cannot speak to the 1920s, but there is little doubt in my mind that there was a concerted effort to game and corrupt the financial system that gained a major momentum in the 1990s, and that culminated in the financial collapse and economic malaise and instability that is plaguing the world today.

One needs look at the actions of Messrs. Greenspan, Rubin, and Weil, and the political administrations during Clinton and Bush and Obama, to begin to penetrate the veil of secrecy.

The only mania and madness of the people was in trusting the words of demagogues and conmen, and their associated supporters and enablers. And even today people continue to mouth their false slogans and fatal prescriptions.

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained growth and recovery.



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If there was ever even a lingering doubt that so-called "conspiracy theorists" were right about the socio-political-economic criminal cartel, cabal, minority, vested interests --- call it what you like --- are involved to one degree or another in hatching various plans to enhance their power (they already have money), the LIBOR incident breaking in the UK - with US collaboration and global implications - should remover the denigrating term from the modern lexicon.

How long can the integrity and personal reputations of critical thinkers be attacked and considered a defense against allegation of fraud and criminal collusion on a grand scale (rhetorical question). Our only vindication will occur when the laws of physics and math (i.e. the universe) automatically come into play. Some call gold "the punisher", but there are other mechanisms at work under the current scenario which, when triggered, will punish beyond understanding.

Every word above by Jesse is correct, but the prescription can no longer be applied by humanity. We passed that tipping point too long ago. Mathematics and the laws of physics, used to advance corruption for so long, are swords with two edges. Since the people have no stomach to act, natural forces will act for them. They may wonder at that time why they suffer with "the guilty", but those who refuse to act are guilty too. Sadly, when things inevitably "let go", the elite plan to profit from chaos will be short-lived - it is difficult to think about comfortably - universal laws are often slow to gather momentum and can be non-selective to a degree, but if we as civilized peoples lack the courage and character to act en masse to push back against those destroying the system, to a degree, we deserve what is coming.
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As Hemingway said about his bakruptcy : it came slowly for a long time, then suddenly
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Sir James, there are no laws of physics and math that automatically come in to play to punish wrong doers and to state categoricly that there are such laws is utterly non-sensical. If i am wrong, then please be so good as to educate me as to what they are. But i am certain that you can do no such thing because you just made it all up.
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Thank you for setting me straight. Damn, I thought this was a universe of law. I, from history, and seeing empire after empire collapse as a result of behaving the way we are now, felt it was, if not categorical, highly suggestive. I did not mean to be dogmatic. History does not expose itself to scientific methods of investigation, but provides a multitude of nominal evidence - or at least data. Many a deviant has come to a bad end - there were two in WWII, at least. But a few have lived to a ripe old age. You may be greatly troubled or unhappy in life, but let me assure you, wrong doers do not sleep well. Is not a life of fear and paranoia punishment. Some of the big Wall Street officials have anxiety attacks in front of others in crisis; many turn to the comfort of liquor or drugs. I never hate them - I know the price they pay. My reference to physics was to universal law (chain theory) and my reference to math was because of the situation into which they have put themselves (OTC derivatives, non-repayable debt, mathematically, they would suffer from a collapse.
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Thank you for setting me straight. Damn, I thought this was a universe of law. I, from history, and seeing empire after empire collapse as a result of behaving the way we are now, felt it was, if not categorical, highly suggestive. I did not mean to be d  Read more
SirJames - 9/4/2012 at 4:54 PM GMT
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