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A short foreward from TomDispatch:
Here's a snapshot in words of Treasury Secretary Tim Geithner when he was still president of the New York Federal Reserve Bank from a recent portrait in the New York Times:
"He ate lunch with senior executives from Citigroup, Goldman Sachs and Morgan Stanley at the Four Seasons restaurant or in their corporate dining rooms. He attended casual dinners at the homes of executives like Jamie Dimon, a member of the New York Fed board and the chief of JPMorgan Chase. Mr. Geithner was particularly close to executives of Citigroup, the largest bank under his supervision. Robert E. Rubin, a senior Citi executive and a former Treasury secretary, was Mr. Geithner's mentor from his years in the Clinton administration, and the two kept in close touch in New York."
Small world, don't you think? This catches something of the lifestyle of Wall Street's rich and financially powerful as well as those who "regulate" them. It's no longer news that the revolving door from Wall Street to Washington and back now spins endlessly. Hence, the increasingly popular moniker "Government Sachs."
"Crony capitalism" was once a term applied to the powerful oligarchs of "emerging economies" or -- a term not heard so much these days -- banana republics. Now, however, as economist Simon Johnson has written, the U.S. is beginning to look startlingly more like one of those "emerging economies" in meltdown. And overseeing the response to the crisis are, of course, representatives of the same crony capitalists and oligarchs who helped create it.
Not surprisingly, the "solution" to the crash of '08 crafted by former Goldman Sachs chairman Henry Paulson, Jr. -- Rubin held the same job before going to Treasury in the Clinton years -- and former New York Fed chief Tim Geithner (who made Mark Patterson, a former Sachs lobbyist, his chief of staff and kept on Sachs alum Neel Kashkari to lead the bailout effort) is clearly meant to staunch the wounds of their world, not ours. TomDispatch regular Andy Kroll, who's read all the latest economic reports so you wouldn't have to, suggests below just what an instrument of Wall Street their rolling bailout program has really been. Tom
The Greatest Swindle Ever Sold
How the Financial Bailout Scams Taxpayers, Subsidizes Wall Street, and Props Up Our Broken Financial System
By Andy Kroll
On October 3rd, as the spreading economic meltdown threatened to topple financial behemoths like American International Group (AIG) and Bank of America and plunged global markets into freefall, the U.S. government responded with the largest bailout in American history. The Emergency Economic Stabilization Act of 2008, better known as the Troubled Asset Relief Program (TARP), authorized the use of $700 billion to stabilize the nation's failing financial systems and restore the flow of credit in the economy.
By Dave Lindorff
Just imagine for a moment that you are a retired contractor, struggling to get by on your pathetically shriveled 401(k). when your ne-er-do-well child suddenly comes to you saying he’s got this idea to start buying derelict homes and rehabbing them for resale. He asks you to stake him with a $100,000 loan (about half of what you’ve got left in your retirement fund), promising to repay you when he sells his first couple of houses. You know the kid’s flat busted and has been laid off from his job as a dishwasher, so you want to help, but you’ve also seen his carpentry skills: The doghouse he build in high school fell apart on a windy day, and his own house has a leaking roof, needs repainting, and all the plumbing leaks. You’ve also seen his business skills: He plays the Lotto excessively, hasn’t saved a penny, and buys most of his supplies at the local 7-Eleven.
Would you front this kid half your money?
Last month, 60 Members of the House of Representatives, including 51 Democrats, voted against the war supplemental for Afghanistan, Pakistan, and Iraq. But this week, when the House is expected to consider the agreement of a House-Senate conference on the war funding, the supplemental could well be defeated on the floor of the House - if most of the 51 anti-war Democrats stick to their no vote - which they might, if they hear from their constituents.
The key thing that's changed is the Treasury Department's insistence that the war supplemental include a $100 billion bailout for the International Monetary Fund - a bailout for European banks facing big losses in Eastern Europe, the international version of the Wall Street bailout.
What's the Administration's specific aim in bailing out GM? I'll give you my theory later.
For now, though, some background. First and most broadly, it doesn't make sense for America to try to maintain or enlarge manufacturing as a portion of the economy. Even if the U.S. were to seal its borders and bar any manufactured goods from coming in from abroad--something I don't recommend--we'd still be losing manufacturing jobs. That's mainly because of technology.
When we think of manufacturing jobs, we tend to imagine old-time assembly lines populated by millions of blue-collar workers who had well-paying jobs with good benefits. But that picture no longer describes most manufacturing. I recently toured a U.S. factory containing two employees and 400 computerized robots. The two live people sat in front of computer screens and instructed the robots. In a few years this factory won't have a single employee on site, except for an occasional visiting technician who repairs and upgrades the robots.
Factory jobs are vanishing all over the world. Even China is losing them. The Chinese are doing more manufacturing than ever, but they're also becoming far more efficient at it. They've shuttered most of the old state-run factories. Their new factories are chock full of automated and computerized machines. As a result, they don't need as many manufacturing workers as before. Read more.
Last month, a little-known company where Summers served on the board of directors received a $42 million investment from a group of investors, including three banks that Summers, Obama’s effective “economy czar,” has been doling out billions in bailout money to: Goldman Sachs, Citigroup, and Morgan Stanley. The banks invested into the small startup company, Revolution Money, right at the time when Summers was administering the “stress test” to these same banks.
A month after they invested in Summers’ former company, all three banks came out of the stress test much better than anyone expected -- thanks to the fact that the banks themselves were allowed to help decide how bad their problems were (Citigroup “negotiated” down its financial hole from $35 billion to $5.5 billion.)
The fact that the banks invested in the company just a few months after Summers resigned suggests the appearance of corruption, because it suggests to other firms that if you hire Larry Summers onto your board, large banks will want to invest as a favor to a politically-connected director.
Last month, it was revealed that Summers, whom President Obama appointed to essentially run the economy from his perch in the National Economic Council, earned nearly $8 million in 2008 from Wall Street banks, some of which, like Goldman Sachs and Citigroup, were now receiving tens of billions of taxpayer funds from the same Larry Summers. It turns out now that those two banks have continued paying into Summers-related businesses. Read more.
Daniel Estulin's "True Story of the Bilderberg Group" and What They May Be Planning Now By Stephen Lendman
Note: Estulin will be the featured guest on The Global Research News Hour Tuesday, June 2. He can be heard live or afterwards through the program archive.
For over 14 years, Daniel Estulin has investigated and researched the Bilderberg Group's far-reaching influence on business and finance, global politics, war and peace, and control of the world's resources and its money.
Earlier this week Mayor Michael Bloomberg announced the appointment of former Lehman Brother's economic strategist, John B. Rhea to head the New York City Housing authority which administers public housing. For those of you who are keeping score, Rhea held his previous position at the time of the failed investment firm's collapse. The move seems to fall in line with the Mayors plan to marry public housing and the private sector and, if what we've seen from the rent guidelines board is any indication, then we could all be in for a bumpy ride. We're already seeing similar signs of such a marriage being proposed by the mayor's office, including his affordable housing plan (see link below). Here is closer look at what Rhea and what his appointment will mean for NYC's affordable housing.
After the collapse of Lehman brothers John B. Rhea, stayed on with the new owners at Barclay's. The 43 year old Wall Streeter also has worked for JP Morgan where he was involved in overseeing several mergers and acquisitions worth 50 billion dollars, according to the NY Times. His biggest merger was that of RJ Reynolds and smokeless tobacco products. His connection to politics has been as money man for the Democrats, often being responsible for Wall Street's contributions to both president Obama and Senator Chuck Schumer. For Obama, Rhea brought in a reported $500,000, mostly from Wall Street. And for Schumer he has been a liaison between the Senator's campaign and Wall Street.
But John B. Rhea has no experience in housing - none. So it seems a bit puzzling why Mayor Bloomberg would put him in charge of an agency which oversees 178,000 apartments throughout the five boroughs, which house just under 408,000 residents. The office is is also in charge of Section 8 housing and runs the federal voucher program. The two programs combined make up 8% of all New York City housing, and which largely serves those earning $23,000 dollars and less a year. Rhea's disconnect from the population that he will be serving become only too clear when, while speaking at an event announcing his new position he joked about "not taking the job for the money". He'll be making $189,700 a year.
To be fair, however, there is little doubt that the former Lehman Brother's executive will be making less than he was during his Wall Street days. But the crime of hiring someone so inexperienced on the issue and is so close to the marketplace is that the office of NYCHA has been a lighting rod for scandals for decades. This under-funded agency, whose annual budget is 3.4 billion dollars, is currently running an 177 million deficit and the public housing itself has been allowed to deteriorate to the point that the buildings themselves are deemed unsafe and, in many cases, are actually condemned. Read more.
- Lehman Brothers Holdings | Rank: 1 | Date of bankruptcy filing: 09/15/08 | Assets: $691 billion | Now trading pink at less than a nickel
- Washington Mutual | Rank: 2 | Date of bankruptcy filing: 09/26/08 | Assets: $327.9 billion
- WorldCom | Rank: 3 | Date of bankruptcy filing: 07/21/02 | Assets: $103.9 billion
Editorial comment: Those first 3 add up to more than a trillion, folks.
- General Motors | Prospective Rank: 4 | Likely date of bankruptcy filing: June 2009 | Assets: $91 billion
- Enron | Rank: 5 | Date of bankruptcy filing: 12/02/01 | Assets: $65.5 billion
- Conseco | Rank: 6 | Date of bankruptcy filing: 12/17/02 | Assets: $61 billion
- Chrysler | Rank: 7 | Date of bankruptcy filing: 04/30/09 | Assets: $39 billion
- Thornburg Mortgage | Rank: 8 | Date of bankruptcy filing: 05/01/09 | Assets: $36.5 billion
- Pacific Gas and Electric Co. | Rank: 9 | Date of bankruptcy filing: 04/06/01 | Assets: $36 billion
- Texaco | Rank: 10 | Date of bankruptcy filing: 04/12/87 | Assets: $34.9 billion
Editorial comment: The last 7 largest bankruptcies add up to $364 Billion, so Lehman Brothers darn near doubled the remaining seven largest bankruptcies in American capitalist history. Way to go! (Not!)
Manipulation: How Markets Really Work
By Stephen Lendman
Wall Street's mantra is that markets move randomly and reflect the collective wisdom of investors. The truth is quite opposite. The government's visible hand and insiders control markets and manipulate them up or down for profit - all of them, including stocks, bonds, commodities and currencies.
It's financial fraud or what former high-level Wall Street insider and former Assistant HUD Secretary Catherine Austin Fitts calls "pump and dump," defined as "artificially inflating the price of a stock or other security through promotion, in order to sell at the inflated price," then profit more on the downside by short-selling. "This practice is illegal under securities law, yet it is particularly common," and in today's volatile markets likely ongoing daily.
Ending Today's Economic Crisis Simply and Easily, in America and Globally
By Stephen Lendman
Some of the best ideas are often the simplest. When applied to the global economic crisis, the solution is easier than imagined. What's hard, in fact a Gordian Knot, is the political will to embrace it. But even matters that great can be solved by a bold stoke, and according to legend, Alexander the Great's "Alexandrian solution" was achieved with one stroke of his sword, cutting the Knot in half. Applied to the global economic crisis, it means addressing it with effective policies, not ones wrecking America and other troubled nations worldwide.
Economist Michael Hudson explains that "debt leveraging is what caused our economic collapse," so piling on more ("The Recovery Plan from Hell" he calls it) makes things worse, especially the way it's done:
Banking is the industry that failed. Banks are meant to allocate capital to businesses and consumers efficiently; instead, they ladled credit to anyone who wanted it. Banks are supposed to make money by skilfully managing the risk of transforming short-term debt into long-term loans; instead, they were undone by it. They are supposed to expedite the flow of credit through economies; instead, they ended up blocking it.
The costs of this failure are massive. Frantic efforts by governments to save their financial systems and buoy their economies will do long-term damage to public finances. The IMF reckons that average government debt for the richer G20 countries will exceed 100% of GDP in 2014, up from 70% in 2000 and just 40% in 1980.
Despite public rage over bank bail-outs, the industry has also comprehensively failed its owners. The scale of wealth destruction for shareholders has been breathtaking. The total market capitalisation of the industry fell by more than half in 2008, erasing all the gains it had made since 2003 (see chart 1).
Employees have scarcely done better. The popular perception of bankers as Porsche-driving sociopaths obscures the fact that many of the industry’s staff are modestly paid and sit in branches, information-technology departments and call-centres. Job losses in the industry have been savage. “Being done” used to refer to hearing about your annual bonus. Now it means getting fired. America’s financial-services firms have shed almost half a million jobs since the peak in December 2006, more than half of them in the past seven months. Many have gone for good. Read more.
Charles Ganske of Russia Blog excerpted a portion of Simon Johnson's May 2009 article at the Atlantic Monthly titled, "The Quiet Coup." The author, Professor Johnson, served as director of the International Monetary Fund from 2007 to 2008, and currently is an academic economist at MIT's Sloan School of Management. Here are a few provocative excerpts:
...at the outset of the crisis, the oligarchs are usually among the first to get extra help from the government, such as preferential access to foreign currency, or maybe a nice tax break, or—here’s a classic Kremlin bailout technique—the assumption of private debt obligations by the government. Under duress, generosity toward old friends takes many innovative forms. Meanwhile, needing to squeeze someone, most emerging-market governments look first to ordinary working folk—at least until the riots grow too large....
Instead, the American financial industry gained political power by amassing a kind of cultural capital—a belief system. Once, perhaps, what was good for General Motors was good for the country. Over the past decade, the attitude took hold that what was good for Wall Street was good for the country. The banking-and-securities industry has become one of the top contributors to political campaigns, but at the peak of its influence, it did not have to buy favors the way, for example, the tobacco companies or military contractors might have to. Instead, it benefited from the fact that Washington insiders already believed that large financial institutions and free-flowing capital markets were crucial to America’s position in the world.
Greenspan Says Banks Still Have a ‘Large’ Capital Requirement
By Alison Fitzgerald | Bloomberg
Former Federal Reserve Chairman Alan Greenspan signaled that the financial crisis has yet to end even as borrowing costs tumble, warning that U.S. banks must raise “large” amounts of money.
“There is still a very large unfunded capital requirement in the commercial banking system in the United States and that’s got to be funded,” Greenspan said in an interview yesterday in Washington. He also said that “until the price of homes flattens out we still have a very serious potential mortgage crisis.”
Greenspan’s comments suggest he sees a bigger capital shortfall in the banking system than reflected in regulators’ stress tests on the 19 biggest U.S. lenders. Treasury Secretary Timothy Geithner told lawmakers yesterday that banks have issued more than $56 billion in new stock or debt since the tests found 10 firms needed to raise about $75 billion. Read more.
US financial institutions will repay $25bn (£16bn) of bail-out funds over the next year, the US Treasury says.
Treasury Secretary Timothy Geithner told US Congress the money will be used to further assist institutions in need of financial help.
Including the anticipated repayment, he estimated that $123.7bn was left from the the $700bn financial bail-out fund approved by Congress in October. Read more.
"Over the Rainbow"
By Stephen Lendman
This writer just completed a six-part series on Ellen Brown's remarkable 2007 book titled "Web of Debt." This article follows from it by picking up on the theme she struck, using L. Frank Baum's "The Wonderful Wizard of Oz" as a combination parable, monetary allegory, and political manifesto for change at a time it's most needed.
Published in 1900 as an American fairytale, it became a popular staple, later made into the classic 1939 film staring Judy Garland, the 1975 award-winning Broadway musical, The Wiz, featuring the first-ever all-black cast, followed by a hit film on the stage production.
As Brown explained, who would have thought this "charming tale....was drawn from that most obscure and tedious of subjects, banking and finance," and (in the wrong hands) the chokehold they have on societies. Who understood that it was "all about people power, manifesting your dreams, (and) finding what you wanted in your own backyard." Who also could have imagined that "the real-life folk heros who inspired (Baum's) plot may have had the answer to" today's global economic crisis.
Brown began by quoting Hans Schicht in a 2005 editorial headlined "The Death of Banking and Macro Politics" in which he stated:
"Through a network of anonymous financial spider webbing only a handful of global King Bankers own and control it all....Everybody, people, enterprise, State and foreign countries, all have become slaves chained to the Banker's credit ropes."
Reviewing Ellen Brown's "Web of Debt:" Part VI
By Stephen Lendman
This is the sixth and final article on Ellen Brown's superb 2007 book titled "Web of Debt," now updated in a December 2008 third edition. It tells "the shocking truth about our money system, (how it) trapped us in debt, and how we can break free." This article focuses on establishing a people-oriented banking system. It's high time we had one and reclaimed what's rightfully ours.
Restoring National Sovereignty with A Truly National Banking System
One serving everyone, not powerful moneychangers alone, the so-called Money Trust cartel of Wall Street bankers looting the national wealth for themselves and heading the country for bankruptcy, tyranny and ruin. Stopping them is Job One, and only mass activist outrage can do it.
At the Chicago Democratic National Convention, William Jennings Bryan won the nomination saying:
"(W)e believe that the right to coin money and issue money is a function of government....I stand with Jefferson (and say), as he did, that the issue of money is a function of the government and that banks should go out of the governing business....(W)hen we have restored the money of the Constitution, all other necessary reforms will be possible, and....until that is done there is no reform that can be accomplished."
Yes, you can pay off all your personal debts -- as I have, with 100% of my mortgage paid off and zero credit card or any other debts. But that won't save you from the ravages of bailout-based inflation. When money loses its value due to inflation -– as it will very shortly -- it's almost as bad as paying interest, or high taxes.
Reviewing Ellen Brown's "Web of Debt:" Part V
By Stephen Lendman
This is the fifth of several articles on Ellen Brown's superb 2007 book titled "Web of Debt," now updated in a December 2008 third edition. It tells "the shocking truth about our money system, (how it) trapped us in debt, and how we can break free." This article focuses on taking back our money power.
Recapturing What's Ours and Turning Scarcity to Abundance
In 1952, Norman Vincent Peale (1898 - 1993) first published his most famous book - "The Power of Positive Thinking." It sold about five million copies and was a New York Times bestseller for 186 consecutive weeks delivering messages like: "Never talk defeat. Use words like hope, belief, faith, victory." FDR struck the same theme in saying: "The only thing we have to fear is fear itself."
In 1900, Frank Baum's The Wizard of Oz was first published, conveying "the notion that a life of scarcity could be transformed in an instant into one of universal abundance...." In real life, the secret is by taking back our money power from the private bankers who stole it in 1913, in the middle of the night, two days before Christmas, and kept it ever since.
Today's real cause of scarcity is that "somebody is paying interest on most of the money in the world all of the time," and by so doing enslaves nearly everyone in perpetual debt bondage. Meeting America's huge debt burden requires the money supply to keep expanding, "and for that to happen, borrowers must continually go deeper into debt, merchants must continually raise their prices, and the odd men out in the bankers' game of musical chairs must continue to lose their property to the banks."
The result - inevitable wars, competition, strife, inflation, deflation, recessions, depressions, debt bondage, poverty, and despair, while at the same time bankers get fabulously richer and more powerful.
Reviewing Ellen Brown's "Web of Debt:" Part IV
By Stephen Lendman
This is the fourth in a series of articles on Ellen Brown's superb 2007 book titled "Web of Debt," now updated in a December 2008 third edition. It tells "the shocking truth about our money system, (how it) trapped us in debt, and how we can break free." This article focuses on America's "web of debt" entrapment.
The Debt Spider Captures America - American Workers Consigned to Debt Serfdom
America has been trapped for over two centuries, with today's debt level way exceeding developing nations. Like bankrupt people staying "afloat by making the minimum payment(s) on (their) credit card(s), the government (avoids) bankruptcy by paying just the interest on its monster debt" - now double in size since Brown's first edition and onerous enough for Controller of the Currency David Walker to warn earlier of its unaffordability by this year. If America can't service the amount, it's officially bankrupt and the economy will collapse. If it happens, IMF austerity will follow and turn America into Guatemala. Other vulnerable economies as well - permanent debt bondage and worker serfdom.
Catherine Austin Fitts was a former high-level Wall Street and government insider. She points to a "financial coup d'etat" conspiracy between the two to hollow out America, centralize power and knowledge, shift wealth to the top, destroy communities and local infrastructure, create new wealth by rebuilding them, and leave human wreckage in its wake.
The Federal Reserve and Current Crisis of our Democracy
By Time for Change | Democratic Underground
Can people really handle their responsibilities as citizens? Or must our "betters", who claim to know what is best for us, forever lead us around like children? We need to cut through their fog and condescension. We must reclaim our power as citizens.
The Federal Reserve System originated in a highly secret meeting of seven of the wealthiest men in the world, taking place at Jekyll Island, off the coast of Georgia in 1910. The seven men included one of our nation's most powerful U.S. Senators, Nelson Aldrich, and six bankers. An article written by one of its participants, Frank Vanderlip, 22 years after the passage of the Federal Reserve Act, documents the aura of secrecy that surrounded the creation of the Federal Reserve:
Reviewing Ellen Brown's "Web of Debt:" Part III
By Stephen Lendman
This is the third in a series of articles on Ellen Brown's superb 2007 book titled "Web of Debt," now updated in a December 2008 third edition. It tells "the shocking truth about our money system, (how it) trapped us in debt, and how we can break free." This article focuses on global debt entrapment.
Global Debt Enslavement - From Gold Reserves to Petrodollars
AP Sources: Obama wants Fed to be finance supercop
By Anne Flaherty | Associated Press | Google News
The White House told industry officials on Friday that it is leaning toward recommending that the Federal Reserve become the supercop for "too big to fail" companies capable of causing another financial meltdown.
According to officials who attended a private one-hour meeting between President Barack Obama's economic advisers and representatives from about a dozen banks, hedge funds and other financial groups, the administration made it clear it was not inclined to divide the job among various regulators as has been suggested by industry and some federal regulators.
"The idea of having a council of regulators was pretty much vetoed," said one participant.
Reviewing Ellen Brown's "Web of Debt:" Part II
By Stephen Lendman
This is the second of several articles on Ellen Brown's remarkable book titled "Web of Debt....the shocking truth about our money system, (how it) trapped us in debt, and how we can break free." It's a multi-part snapshot. Reading the entire book is strongly recommended - easily obtainable through Amazon or Brown's webofdebt.com site.
Bankers Capture the Money Machine - Fighting for the Family Farm
In the 1890s, "keeping the family homestead was a key political issue" given that foreclosures and evictions "were occurring in record numbers," much like today. The "Bankers Manifesto of 1892" spelled it out - a willful plan "to disenfranchise farmers and laborers of their homes and property," again like today except that now our very freedom and futures are at stake as sinister forces aim to steal them by turning America into Guatemala and lock it down by police state repression.
By Dave Lindorff
What a joke the Obama administration is becoming, as it keeps trying to prop up failing industry after failing industry.
First we had the president becoming First Car Salesman, offering federal guarantees for GM and Chrysler car warrantees so that potential car customers wouldn’t turn away from those two companies’ showrooms fearing that the manufacturers would go bust and leave them holding the bag. Then he started touting the cars themselves, saying they were “great products” and that people should go out and buy them.
Urgency of the American Monetary Act
by Richard C. Cook
On Thursday, April 23, 2009, Stephen Zarlenga, director of the American Monetary Institute (AMI), delivered two briefings on Capitol Hill on the American Monetary Act that AMI drafted and that may be introduced as legislation during the current congressional session. This single measure has the potential of bringing together the tens of millions of people who have realized it’s our bank-run debt-based monetary system that lies at the center of the financial rot that is destroying our republic and its values.
Attending the briefings were congressional staffers and members of the public. Zarlenga was introduced by Congressman Dennis Kucinich (D-OH), who has spoken in favor of wholesale reform of the monetary system on the floor of the U.S. House of Representatives. Kucinich is also sponsor of H.R. 7260, the “Transparency in the Creation of Wealth Act of 2008.” This act would require the Federal Reserve to resume reporting on the quantity of M3 in the economy (mega-money accessible only to large financial institutions), along with several other economic indicators it now keeps to itself, such as total credit market debt and the holding of Federal Reserve notes by foreign interests.
Reviewing Ellen Brown's "Web of Debt:" Part I
By Stephen Lendman
This is the first of several articles on Ellen Brown's superb 2007 book titled "Web of Debt," now updated in a December 2008 third edition. It tells "the shocking truth about our money system, (how it) trapped us in debt, and how we can break free." Given today's global economic crisis, it's an appropriate time to review it and urge readers to digest the entire work, easily gotten through Amazon or Brown's webofdebt.com site. Her book is a remarkable achievement - in its scope, depth, and importance.
In the forward, banker/developer Reed Simpson said:
Am I excited that "US lawmakers voted Wednesday to create a 9/11-style commission of experts to probe the causes of last year’s devastating financial meltdown and to draw lessons to prevent its recurrence"?
The 9/11 Commission has - in retrospect - expressed confidence in the whole process:
- The co-chairs of the 9/11 Commission (Thomas Keane and Lee Hamilton) now admit that the Commission largely operated based upon political considerations
- The co-chairs also said that the CIA (and likely the White House) "obstructed our investigation"
- Indeed, they said that the 9/11 Commissioners knew that military officials misrepresented the facts to the Commission, and the Commission considered recommending criminal charges for such false statements, yet didn't bother to tell the American people (free subscription required)
- 9/11 Commission co-chair Lee Hamilton says "I don't believe for a minute we got everything right", that the Commission was set up to fail, that people should keep asking questions about 9/11, that the 9/11 debate should continue, and that the 9/11 Commission report was only "the first draft" of history
- 9/11 Commissioner Bob Kerrey said that "There are ample reasons to suspect that there may be some alternative to what we outlined in our version . . . We didn't have access . . . ."
Who’s Behind the Financial Meltdown? | Press Release
Center for Public Integrity Investigation Identifies Top 25 Subprime Lenders and their Wall Street Backers The top subprime lenders whose loans are largely blamed for triggering the global economic meltdown were owned or backed by giant banks now collecting billions of dollars in bailout money, according to Who’s Behind the Financial Meltdown?, a new investigation by the Center for Public Integrity.
“The mega-banks that funded the subprime industry were not victims of an unforeseen financial collapse, as they have sometimes portrayed themselves,” said Center Executive Director Bill Buzenberg. “These banks were deliberate enablers that bankrolled the type of lending that's now threatening the financial system.”
These are among the findings that emerged from the Center’s computer analysis of government data on nearly 7.2 million “high-interest” or subprime loans made from 2005 through 2007, a period that marks the peak and collapse of the subprime boom. The analysis also revealed The Subprime 25 — the top 25 originators of the high-interest loans, accounting for nearly $1 trillion and about 72 percent of industry — who reported subprime loans during that period.
In fact, other Wall Street insiders -- many of them big contributors to the Obama presidential campaign, and progressive in their concern for the public interest -- privately are expressing serious concerns that Geithner, Summers and their associates are leading the president and America's taxpayers down a path toward further economic disaster. This week, as Senate Majority Whip Richard Durbin of Illinois unsuccessfully fought for a congressional amendment he said would have helped 1.7 million Americans save their homes from foreclosure, the senator told a radio station back home that, "The banks -- hard to believe in a time when we're facing a banking crisis that many of the banks created -- are still the most powerful lobby on Capitol Hill. And they frankly own the place." He could say the same of the White House.