Sunday, October 19, 2008

Current crisis was predicted in 1997

I was interested to read at today that Brooksley Born, head of the Commodity Futures Trading Commission, warned in congressional testimony in 1997 that unregulated trading in derivatives could "threaten our regulated markets or, indeed, our economy without any federal agency knowing about it".

Her concern was met with scorn and condescension from former Federal Reserve Chairman Alan Greenspan, former Treasury Secretary Robert Rubin and his deputy Lawrence Summers - "three marketeers" who continued to peddle the complex financial instruments at the heart of the current crisis.

Click here for the Alternet article.

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