Posts Tagged ‘Wall Street crash’

The hollow populism of Steve Bannon

February 13, 2017

Steve Bannon, the chief adviser to President Donald Trump, is probably the most influential person in the Trump administration besides Trump himself.

But I find it hard to get a handle on Bannon’s thinking, since he shuns the limelight, and hasn’t written any books or magazine articles I could get hold of,

His 2010 documentary film, Generation Zero, is probably as good a guide to his thinking as anything else.

It is well done and, despite being 90 minutes long, held my interest—at least until the last 10 minutes of so, which consists of restatements of the main points.

Generation Zero is an analysis of the roots and consequences of the 2008 financial crisis, which Bannon rightly blames on crony capitalism, the unholy alliance of Wall Street and Washington that began in the 1990s.

But if you look at the film’s action items, what he really does—knowingly or unknowingly—is to protect Wall Street by diverting the public’s attention from what’s really needed, which is criminal prosecution of financial fraud and the break-up of “too big to fail” institutions.

Bannon presents himself as an enemy of corrupt politicians and financiers.  But there is nothing he advocates in the film or otherwise that threatens the power of either.

∞∞∞

Generation Zero draws on a book, The Fourth Turning by William Strauss and Neil Howe, who claim there is a cycle in American politics based on the succession of generations.  Each cycle consists of four turnings—(1) a heroic response to a crisis, (2) a new cultural or religious awakening, (3) an unraveling and (4) a crisis.

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How Clinton’s benefactor cashed in on the crash

October 3, 2016

Back in 2006, Donald Trump said he was sort of looking forward to the coming housing crash, because he could cash in—presumably by buying up distressed properties.

However, Trump didn’t do anything to cause the housing crash.   In contrast, Hillary Clinton’s benefactor and social friend, Lloyd Blankfein of Goldman Sachs, not only benefited from it, but helped to bring it about.

His firm bought up subprime mortgages.   That meant lenders could make “liar’s loans” they knew would never be paid back, and eliminate their risk by selling them to Goldman Sachs.

Goldman Sachs converted the mortgages into securities, like stocks or bonds, and sold them on the open market.   They got rating agencies to label the securities as high quality investments, even though Goldman Sachs management knew they weren’t.

They made other investments based on the assumption that the market would crash and the securities would become worthless.

Other Wall Street companies did similar things, but Goldman Sachs was a leader.  All this seems like financial fraud to any normal person, but the Obama administration decided not to prosecute.

All this happened when Lloyd Blankfein was CEO of Goldman Sachs.  He became CEO in 2006 and before that was chief operating officer.

Goldman Sachs has given Hillary Clinton $675,000 for making three speeches, and husband Bill Clinton $1.55 million in speech fees.

The firm’s employees as a group are among the top five contributors to Hillary Clinton’s campaigns.

Goldman Sachs also hosted the Clinton Global Initiative; the video above shows a picture of Hillary Clinton and Lloyd Blankfein at a CGI meeting.

How likely is it that a Clinton administration would prosecute Goldman Sachs officials for financial fraud?  How likely is it that a Clinton administration would bring financial malpractice under control?  The likelihood is next to zero, in my opinion.

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