INSIDE JOB - Dylan Ratigan Interviews Director Charles Ferguson - How Wall Street Took Over Government
Watch at least the first 2 minutes. Ratigan is on fire. Below is an editorial from Ferguson submitted to us for publication.
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By Inisde Job Director Charles Ferguson
Why economists are part of the problem
Both Glenn Hubbard and Laura Tyson have played major roles in American economic policy, and both also, unfortunately, exemplify the disturbing, opaque conflicts of interest that pervade the economics discipline.
Over the last thirty years, academic economics has been penetrated by special interests, particularly financial services, in the same way that America’s political and regulatory systems have been compromised by campaign contributions and the revolving door. In fact, the “revolving door” is now a triangular trip between industry, government, and academia.
Prominent economists are now routinely paid to testify in antitrust cases, criminal trials, and regulatory proceedings; to testify in Congress; to give speeches to the industries and firms they study; to serve on boards of directors and as advisors; and to write supposedly objective analyses of industries, companies and policies. These payments and the conflicts of interest they generate are rarely disclosed, except when required by Federal law.
These activities are not marginal; they are now, literally, a billion dollar industry, managed by firms such as the Law and Economics Consulting Group (LECG), The Analysis Group, Compass Lexecon, Charles River Associates, and others. Professors’ income from such groups often dwarfs their academic salaries. That neither universities nor most publications require such disclosure was one of the most shocking facts I learned while making Inside Job, my documentary on the financial crisis.
From 2001 to 2003, Glenn Hubbard was chair of the Council of Economic Advisors in the George W. Bush administration. He was a major force behind the Bush administration’s tax cuts, over half of whose benefits went to the wealthiest 1% of the American population. Since becoming dean of Columbia Business School, Hubbard has written and spoken widely on financial regulation, and has served as co-chair of the Committee on Capital Markets Regulation, whose other co-chair is John Thornton, who is chairman of the Brookings Institution – and the former president of Goldman Sachs. Hubbard’s recent or current affiliations include but are not limited to Met Life ($250,000 per year), Capmark (a major commercial mortgage firm during the bubble, which went bankrupt in 2009), KKR, and Black Rock. In our on-camera interview, Hubbard refused to disclose his current consulting clients.
In 2004, Hubbard co-wrote a paper with William C. Dudley, then the chief economist of Goldman Sachs, entitled “How Capital Markets Enhance Economic Performance and Facilitate Job Creation.” The paper praises securitization and the rise of credit derivatives (particularly credit default swaps), saying that they have increased economic growth, reduced systemic risks, and reduced both the size and duration of recessions. Hubbard refused to answer when we asked him by letter whether he was paid to write the paper, and also refused to disclose whether he had ever received any payments from Goldman Sachs.
Laura Tyson was chair of the Council of Economic Advisors, and then director of the National Economic Council, in the Clinton Administration. Shortly after leaving government and returning to U.C., Berkeley, she joined the board of directors of Morgan Stanley, which pays her $350,000 per year. She also joined the board of AT&T and became a principal of the Law and Economics Consulting Group. She agreed to be interviewed for my film, but then stopped responding to email and phone calls, so we were unable to interview her. In general, she has confined her remarks on the financial crisis to extremely vague statements about “greed,” “human nature,” etc.
Other prominent economists heavily dependent upon financial services income over the past decade, and whose behavior is examined in my film, have included Larry Summers (hedge funds, investment banks), Martin Feldstein (AIG), Richard Portes (Icelandic banks), and Frederic Mishkin (Icelandic banks, unnamed U.S. financial services firms), all of whom have played prominent roles in public debate and policy. So, unfortunately, Hubbard and Tyson are in prominent company.
Watch the film trailer here...
Aug 27, 2011 at 12:11 PM
Reader Comments (27)
http://www.reuters.com/article/idUSTRE68L4WG20100922
http://www.huffingtonpost.com/alex-moore/inside-job-director-obama_b_746110.html
The banks, say three federal judges, are getting ‘a free ride.’ The justice is ‘half baked.’
http://www.newsweek.com/2010/10/01/my-turn-bring-the-big-banks-to-justice.html
http://blogs.reuters.com/great-debate/2010/10/12/why-economists-are-part-of-the-problem/
this proves all mortgages are fraudulent
then google sullivan vrs united states
this proves 16th amendment was never ratified
meaning fed tax is illegal
Yes, the banksters of the Council on Foreign Relations have intentionally derailed our economy. The need to do so in order to absorb us into a global system. Ferguson's gatekeeping production is art of the effort, to expose a few half-truths that will never be pursued, and by further placing blame for the problem on government, when in reality, the blame belongs with the Council on Foreign Relations members who have been running our government for the last 40 years.
1 to unwind the mortgage and commercial real estate market
2 to slow the growth of China
3 to slow the growth of OPEC nations
4 to unwind the derivatives that had no basis in reality, no clearing house and too many of the same triggers to settlement
5 to bring European pensions under control
6 to protect the dollar as the reserve currency
7 to slow the use of fossil fuels (mainly China's growig demand)
8 to slow population growth
9 to buy time with regards to radical Islam
10 to buy time to better implement carbon tax / global tax.
11 to slow world economy to lower demand for Artic resources
12 to buy precious metals, mineral, land and water resources at a discount
13 futher consolidate banking system and wealth
14 to flush out private equity to Asia
15 to put the U.S. and European nations further into debt
Well, that is a start...did I miss any?
Study Col. Edward Mandell House, (side note on Col. House, he is the son of Thomas W. House a gun runner, financier, and agent of the Rothschild's during the Civil War, who was linked to the anti-Lincoln, pro-banker interests, plot against Lincoln) some called him the "unseen guardian angel" of the Federal Reserve Act, helping to guide it through Congress.
http://www.servelec.net/lincoln.htm
http://www.usavsus.info/EdMandellHouse.htm
In 1912, House wrote the book "Philip Dru: Administrator" in which he stated that he was working for "Socialism as dreamed of by Karl Marx." In this book, House laid out a plan for taking over America, stating how both the Democratic and Republican Parties would be controlled, and used as instruments in the creation of a socialistic government. And he asked for the establishment of a state-controlled central bank, which were both proposed in "The Communist Manifesto".
In 1921, House and his friends formed the Council on Foreign Relations whose purpose right from its conception was to destroy the freedom and independence of the United States, and to lead the country into a one-world government.
Right from its beginning, in 1921, the CFR began to attract men of power and influence. In the late 1920’s, important financing for the CFR came from the Rockefeller Foundation and the Carnegie Foundation.
Between 1923 and 1929 the Federal Reserve expanded the money supply by sixty-two percent. When the stock market crashed, many small investors were ruined, but not "insiders." In March of 1929 Paul Warburg issued a tip the Crash was coming, and the largest investors got out of the market, according to Allen and Abraham in "None Dare Call it Conspiracy."
With their fortunes intact, they were able to buy companies for a fraction of their worth. Shares that had sold for a dollar might now cost a nickel, and the buying power, and wealth, of the rich increased enormously.
Curtis Dall, son-in-law of FDR and a syndicate manager for Lehman Brothers, an investment firm, was on the N.Y. Stock Exchange floor the day of the crash. In "FDR: My Exploited Father-In-Law," he states: "...it was the calculated 'shearing' of the public by the World-Money powers triggered by the planned sudden shortage of call money in the New York Market."
In 1940, at the invitation of President Roosevelt, members of the CFR gained domination over the State Department, and they have maintained this domination ever since.
Taking America off the gold standard in 1934, FDR opened the way to unrestrained money supply expansion, decades of inflation--and credit revenues for banks. Raising gold prices from $20 an ounce to $35, FDR and Treasury Secretary Henry Morgenthau, Jr. (son of a founding CFR member), gave international bankers huge profits.
Since 1934 almost every United States Secretary of State has been a CFR member; and ALL Secretaries of War or Defense, from Henry L. Stimson through Dick Cheney.
Since 1940 nearly ALL presidential candidates have been CFR members. President Truman, who was not a member, was advised by a group of "wise men," all six of whom were CFR members.
The late Carroll Quigley (Bill Clinton’s mentor), Professor of History at Georgetown University, member of the CFR, stated in his book, "Tragedy & Hope": "The CFR is the American Branch of a society which originated in England, and which believes that national boundaries should be obliterated, and a one-world rule established."
Rear Admiral Chester Ward, a former member of the CFR for 16 years, warned the American people of the organization’s intentions:
"The most powerful clique in these elitist CFR groups have one objective in common — they want to bring about the surrender of the sovereignty of the national independence of the United States. A second clique of international members in the CFR comprises the Wall Street international bankers and their key agents.
Barry Goldwater stated in his book, "With No Apologies", on page 231: "Does it not seem strange to you that these men just happened to be CFR and just happened to be on the Board of Governors of the Federal Reserve, that absolutely controls the money and interest rates of this great country without benefit of Congress?
Congressmen John R. Rarick had warned of the CFR;
"The CFR, dedicated to one-world government, financed by a number of the largest tax-exempt foundations, and wielding such power and influence over our lives in the areas of finance, business, labor, military, education, and mass communication-media, should be familiar to every American concerned with good government, and with preserving and defending the U.S. Constitution and our free-enterprise system.
In 1973, The Trilateral Commission was founded to work for the same goal: a one-world government. The Trilateral Commission's roots stem from the book, "Between Two Ages", written by Zbigniew Brzezinski in 1970. In this book, Brzezinski praised Marxism, thought of the United States as obsolete, and praised the formation of a one-world government. His thinking closely parallels that of CFR founder Edward Mandell house.
On page 72, Brzezinski writes: "Marxism is simultaneously a victory of the external, active man over the inner, passive man and a victory of reason over belief."
On page 83, he states: "Marxism disseminated on the popular level in the form of Communism, represented a major advance in man's ability to conceptualize his relationship to his world."
On page 123, you will find: "Marxism supplied the best available insight into contemporary reality." What Brzezinski fails to tell his readers is that approximately 100 million human beings have been murdered under Marxism "in the form of Communism" just in this last century, it has enslaved a billion more.
Not to mention numerous quotes over the years by those who proudly seek to fulfill that which is widely scoffed at even when it is stated directly to them;
http://www.truthandliberty.com/Quotes_on_NWO_-_Elite.html
Those who see life as the shadows on the wall of Pato's cave would never accept the truth even if all the conspirators unanimously confessed. Six books are referenced above so you better get reading, I will leave it at that for now, I don't want to bury you under twenty five years of reading to fast, it might break you.
No conspiracies here people, move along, the cave wall show is getting ready to start...
Yes, this is why the Dems. are all Croupt Lawyers, and the Rep. are al crooked Big Buissnes Crooks. The Council on Foreign Relations and The Trilateral Commission, controled by the "Builderburg Group" runs this country, only the last 40 years right out in the open.
Mr Obama, was picked up by "Mr Crook" him self, Henery Kissenger back in 1971, wisked away for the new world savior in 2008. So far that nice man Mr. Obama, has done everything they told him to do.
George Soros is the guy that gets to deal out the cards. He makes sure the house always wins, we always lose. This is why in the last 2 years everything is "Imploading" on its self. Hang On, Nov.2nd we'll see how they will stack the deck agunist the people, and keep the Dems. in power.
Why do you think were hearing the LameSM, tell us all the Pre-Votes, are running Dem strong, much stronger than the Reb. will like to see. Places 10% ahead of the Rep. ( Bunch of F****ing BS ! )
The ol "Switch-a-Rew Game" has just begon. Set them up by telling them the #'s favor the Dem. party. "Dar--Dar-----DAR" Wake up. You fell asleep on yr puter desk again. You want a DRINK, Yeaaaaaaaaaaaa, I was having a realy bad dream Ann....!
Yea, them dirty ol Dem. Lawyers got the """ The Council on Foreign Relations and The Trilateral Commission, controled by the "Builderburg Group"""" to switch the #'s again like they did on "Shit-Head Gore", and "Baby Boots" got in instead.
You dont think GS spent all his money to take the USA down, to give up this eazy...? Its Show Time Folks...Thus, is why I have 4-5.....6-7 drinks every night so I dont do a Bob. () I Do Hope Im Wrong About This ()
According to the Guardian, Mubarak has money stashed in several Swiss and other foreign bank accounts, and has shadowy real-estate holdings in Manhattan, London and Rodeo Drive in Beverly Hills.
The 70 billion dollars would put the 82-year-old comfortably ahead of Mexican business magnate Carlos Slim Helu, who is worth about 53.5 billion dollars, and Microsoft founder Bill Gates, the richest American with 53 billion dollars.
http://news.xinhuanet.com/english2010/business/2011-04/12/c_13824050.htm
[snip]
"I feel comfortable with U.S. growth," said Paulson, who served in Bush administration during 2006-2009, while noting that the first quarter's performance was "sort of disappointing.".....
......"I believe...the unemployment is going to remain at an unacceptable level in the U.S. for a number of years," said Paulson, serving as Chairman and CEO at Goldman Sachs, a well-known investment banking and securities firm, since 1999.
Don't look now but the republicans are at war with the middle class.
That said, both directors seem to buy into bromides that have little use. Ferguson, for example, blames the derivatives disaster on the lack of regulation, when in point of fact the problem is the lack of price discovery and the absence of an exchange (which would of course be regulated, but that's putting the cart before the horse).
Moore tees off on capitalism and the bailouts without recognizing real capitalism would have spelled the death of the big boys on Wall Street, who are a bunch of complete pussies.
But both directors are dead right about one thing: the fact that 10,000 or more of these fuckers aren't in jail--or even indicted--points to fetid decay in our former republic.
To be fair he says the same for Republicans which though undoubtedly true, is not really news in the same way as Moore attacking his own party. He is not alone in this sentiment; Bill Moyers made the exact same point to Bill Maher recently. We and our commenters have also been grinding this particular axe since the day we launched the site.
The banking oligarchy runs the show in Washington regardless of which side has the majority. Geithner is but Paulson with hair and more active hands. Even conservative darling Sarah Palin is a flaming bailout socialist. Sadly, Wall Street and its powerful banking lobby own the majority of politicians from both sides. It's merely a coin-flip for last place among the disgraced. Just how the bankers planned it 120 years ago. A pox on everyone but a resilient few. An outstanding 2-minute clip.
http://dailybail.com/home/video-michael-moore-admits-democrats-are-owned-by-wall-stree.html
http://dailybail.com/home/video-ratigan-and-michael-moore-on-record-wall-street-bonuse.html
http://dailybail.com/live-beat/michael-moore-an-open-letter-to-president-obama-on-afghanist.html
http://dailybail.com/home/ratigan-suggests-a-different-name-for-michael-moores-bailout.html
Michael Moore Attempts A Citizen's Arrest On AIG Executives (New HD Trailer From 'Capitalism: A Love Story')
As you pointed out (on camera), Lehman was going around saying aw shucks, we need 10-20B and we'll be fine; and when it was all said and done the hole was 600B. (That's likely to make the final cut, btw.).
Yves actually talks about that in the deleted scenes section of the Inside Job DVD.