The fact Summers was being pushed by Obama and the mainsteam press tells you much more about them than Summers. We already knew Summers was a Pritzker Rubinite that fought for the two biggest bankster policy frauds that gave us the financial crisis and continues to be the major hindrance of economic growth. Greg Palast provides some of the details and elaborates in his piece titled, “Larry Summers: Goldman Sacked”.
Here is Max Keiser’s video interview with Greg Palast discussing the “end game” memo that decriminalized the sale of derivatives across the globe. The instruments of societal destruction may have become more complicated, but the passions of man never change, which is why the “credibility trap” and “control fraud” are causing history to repeat.
As a reminder, Summers helped repeal Glass Steagall (Financial Services Modernization Act of 1999), which was put in place after the Great Depression to put a firewall between customer deposits and proprietary (prop) trading. But what good would access to depositors money be if you didn’t have an unlimited supply of unregulated products with which to sell and speculate? That piece of the puzzle would also be shepherded by Mr. Treasury Secretary, Larry Summers, a year later with the Commodity Futures Modernization Act of 2000. This “modernization act” deregulated derivatives – eliminating oversight, reserve requirements, mandated disclosures, and listing minimums. Derivatives were used to mask Greek and other PIIGS debt and have been sold all over the world, now amounting to a notional value over $1 QUADRILLION, almost 20 times WORLD GDP.
These two “Modernization Acts” gave us the financial conflagration of 2008, which spread from Wall Street to every corner of the economy, and also resulted in the bankruptcy MF Global (engineered by the ex-Goldman CEO, NJ politician, and friend of Summers – The Dishonorable, Jon Corzine). These acts in the hands of Wall Street sociopaths also gave us an unending “neither admit nor deny” misconduct penalties against banks. Although, the latest $800 BILLION fine against JP Morgan for a derivative trade that went bad by The London Whale, may require a groundbreaking admission of guilt.
The lack of economic growth, the concentrated bank power, the still dangerous derivative-plagued financial system, and of course, the sub-par job creation can all be traced back to actions by Summers, Rubin, Greenspan, Bernanke, Geithner, and the bought and paid for politicians that pushed the bills through Congress.
As we will see after the FOMC meeting tomorrow, it won’t matter who the next Fed Chair will be, because even if the manipulated unemployment rate reaches the Fed’s target by 2016, interest rates cannot be allowed to return to normal without blowing up the debt-laden budgets around the world. If the Fed cannot allow rates to naturally rise with an improving economy, the result will continue to lead to malinvestment, unfunded pensions, and retirees living on less fixed income. Some may believe Summers made a shrewd move by avoiding the Chair. The more likely case was the establishment did not want to remind the public how they were, and continue to be, defrauded.
Financial reform cannot occur without equal application of the rule of law.