NEWSFLASH: The Meltdown Didn’t Have to Happen

Filed in Alan Greenspan, BP, democrats, Federal Reserve, Gold, Gold Market, lead, Lear, o, Yahoo by on January 28, 2011 0 Comments

Watching the government do practically anything is often akin to watching molasses run down the hill in January. But like that slow running ooze, even the government eventually manages to accomplish its feat. The problem in this case is that they are telling us what we already know. So here’s the newsflash sportfans: the financial meltdown could have been stopped. Gee thanks… From the New York Times by Sewell Chan entitled: Financial Meltdow was ‘Avoidable’, Inquiry Concludes “ The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a Congressional inquiry. The government commission that investigated the financial crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors, and risky bets on securities backed by the loans. “ The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done,” the panel wrote in the report’s conclusions. “If we accept this notion, it will happen again.” The commission’s report finds fault with two Fed chairmen: Alan Greenspan, a skeptic of regulation who led the central bank as the housing bubble expanded, and his successor, Ben S. Bernanke, who did not foresee the crisis but then played a crucial role in the response to it. It criticizes Mr. Greenspan for advocating financial deregulation and cites a “pivotal failure to stem the flow of toxic mortgages” under his leadership as “the prime example” of government negligence. It also criticizes the Bush administration’s “inconsistent response” to the crisis — allowing Lehman Brothers to go bankrupt in September 2008 after earlier bailing out another bank, Bear Stearns, with help from the…

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NEWSFLASH: The Meltdown Didn’t Have to Happen

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