Friday, October 23, 2009
Frontline Episode Shows How Neoliberals Enabled Economic Collapse
Frontline's latest episode called "The Warning" presents information on the history of over-the-counter credit derivatives and Brooksley Born, the head of the CFTC who cautioned that these unregulated financial instruments (over-the-counter derivatives) created a major risk for the economic markets. According to the Frontline sources, Alan Greenspan reportedly said he did not favor prosecution of fraud in this market that grew to $596 Trillion in derivatives. When Born decided to prosecute anyway, she was marginalized by FED Chairman Greenspan and Clinton Treasury officials Robert Rubin and Larry Summers. The episode also notes that Timothy Geitner, now the US Treasury Secretary, was also part of the male-dominated neoliberal contingent.