The Five Most Wanted Rip-off Artists from Wall Street and Washington

[DogPoundPup]

By Jim Hightower,

What the hell's happening here? Why is my bank in the tank? And my house and job? And my retirement money? Even my state's teetering on the brink of broke! Who did this to us?

Fair questions, but we're not getting honest answers. Last year, at the first signs of the global financial slide toward the abyss, we were told that it's just a little hiccup caused by something called subprime mortgages. Not to worry, the Powers That Be declared confidently, for we have the damage contained. And rest assured that "the fundamentals of our economy are sound."

Then, this spring, Bear Stearns cratered, requiring an emergency federal subsidy to cover billions in bad loans. Okay, admitted those in charge, that subprime stuff actually is leveraged on up the financial system, and maybe there's been a bit of greed among a few of the big players, but we really do have the problem contained now, and, hey, "the fundamentals of our economy are sound."

But in September--Omigosh!--there went Lehman Brothers, Freddie Mac and Fannie Mae, AIG, Merrill Lynch, Goldman Sachs, Citigroup, WaMu, Wachovia, and others. Well, yes, conceded the now-frazzled financial establishment, but gollies, we're throwing hundreds of billions of your tax dollars into sandbags to contain the problem, and remember: "The fundamentals of our economy are sound."

In October, the contagion rolled through Britain, Canada, and Europe; it spread to Brazil and across to China and Japan; and--Holy Schmoly--suddenly all of Iceland was melting in bankruptcy! Stay calm, cried an openly panicked chorus of Washington officials,...................

read the entire column @ http://www.alternet.org/columnists/story/105828/the_five_most_wanted_rip-off_artists_from_wall_street_and_washington/

[Why Syzygy]

1. All true.

Maybe this time we'll do something about it. Getting the commander in thief out of town will help.

unbridled greed

[Why Syzygy]

2. Another excerpt... this is excellent and should be widely reported

However, not everyone was sanguine about the chairman's reliance on derivatives as the pillar of Wall Street's financial strength. Many wise heads viewed these financial "products" as speculative mumbo-jumbo. Billionaire financier George Soros says his firm never invested in them "because we don't really understand how they work." Investment banker Felix Rohatyn described them as "hydrogen bombs." Back in 2003, investment guru Warren Buffett called them "financial weapons of mass destruction" that were "potentially lethal" for our economy.

But Greenspan's voice was the most powerful, and he was both a determined bureaucratic protector and an exuberant cheerleader for derivatives. Meanwhile, wealthy investors worldwide were making a killing from their investments in these bizarre pieces of paper, and few in Washington were willing even to question The Oracle.

"I always felt that the titans of our legislature didn't want to reveal their own inability to understand some of the concepts that Mr. Greenspan was setting forth," said Arthur Levitt, a well-regarded Wall Street regulator under Clinton. "I don't recall anyone ever saying, 'What do you mean by that, Alan?'"