Send a Tweet
Most Popular Choices
Poll Analyses
Share on Facebook 7 Share on Twitter 1 Printer Friendly Page More Sharing
OpEdNews Op Eds    H2'ed 8/28/13

Stop Larry Summers Before He Kills Again

By       (Page 2 of 2 pages) Become a premium member to see this article and all articles as one long page. (View How Many People Read This)   1 comment
Author 1384
Message

Still, the stock markets were soaring, the Internet bubble had yet to burst, and the bankers had flooded Washington with lobbyists. Even with the crash of LTCM, no one wanted to listen. Congress declared a regulatory freeze on anything Born's agency could do, ruled OTC derivatives beyond regulation, and raced ahead with the repeal of the Glass-Steagall Act, which had separated commercial banks from the riskier investment banks.

Like a lady, Brooksley Born resigned, and 10 years later the global financial system came tumbling down, just as she said it would. "It was my worst nightmare coming true," she said. "Nobody really knew what was going on in the market. The toxic assets of many of our biggest banks are over-the-counter derivatives and caused the economic downturn that made us lose our savings, lose our jobs, lose our homes. It was very frightening."

Worse, the country still won't listen to her. With Larry Summers as one of Obama's top economic advisers, the bankers were allowed to gut almost every effort at reform. They still call the shots. Larry Summers says that he now favors strong regulation of over-the-counter derivatives, but the new regulations are still not in place.

"I think we will have continuing danger from these markets and we will have repeats of the financial crisis," warns Born. "It may differ in detail, but there will be significant financial downturns and disasters attributed to the regulatory gap over and over until we learn from experience."

From that experience, Larry Summers hardly seems the right man to become the nation's top financial regulator. We can only hope that President Obama comes to the same conclusion.

_______

*A veteran of the Berkeley Free Speech Movement and the New Left monthly Ramparts, Steve Weissman lived for many years in London, working as a magazine writer and television producer. He now lives and works in France, where he is researching a new book, "Big Money: How Global Banks, Corporations, and Speculators Rule and How To Break Their Hold."

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

 

Must Read 1   News 1   Supported 1  
Rate It | View Ratings

Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Jim Cramer Uses CNBC to Manipulate Stocks

Video: Is Bristol Palin Baby Trig's Mother? Evidence & Pictures

BabyGate: Explosive New Details and the Smoking Gun Photo

Romney's Storm Tips

Feeding The Homeless BANNED In Major Cities All Over America

Most Massive Natural Disaster in US History-- and you don't know what caused it.

To View Comments or Join the Conversation: