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Fri Oct 19, 2012, 08:02 AM

Meet Romney’s Economic Hit Man

“Romney’s Go-To Economist” read the headline on a New York Times profile of the dean of Columbia University’s Business School, which notes that “During a stint as chairman of the Council of Economic Advisers for President George W. Bush, from 2001 to 2003, Mr. Hubbard was known as the principal architect of the Bush tax cuts.” In that capacity, and after returning to Columbia, Hubbard was also the chief cheerleader for a runaway derivatives market that spiraled out of control and left the Great Recession in its wake.

While pocketing millions in fees from the financial industry that he was ostensibly studying as a neutral academic, Hubbard was an enthusiastic backer of the virtues of a burgeoning unregulated capital market that sold toxic derivatives to the world. In a landmark paper that he co-wrote in November 2004 with William C. Dudley, at the time the chief U.S. economist at Goldman Sachs, it was asserted, “The capital markets have helped facilitate a major transformation of the U.S. mortgage financing system over the past 25 years. … The result has been a dramatic decline in the cyclical volatility of housing activity.”

Their study was published by the Global Markets Institute of Goldman Sachs at the very time that Goldman, a leader in the capital market, was packaging and selling some of the toxic mortgage-based derivatives that would come close to destroying the world’s economy.


Hubbard’s article celebrated this “revolution in housing finance (that) has led to a large increase in mortgage equity withdrawal.” It extolled the madcap equity lending as “one reason why consumer spending held up well during the 2001-2003 period, even as employment and investment spending faltered.”



http://www.truthdig.com/report/item/meet_romneys_economic_hit_man_20121018/

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Reply Meet Romney’s Economic Hit Man (Original post)
midnight Oct 2012 OP
bemildred Oct 2012 #1
midnight Oct 2012 #2
jsr Oct 2012 #3

Response to midnight (Original post)

Fri Oct 19, 2012, 08:17 AM

1. This is Rmoney's true agenda, believe that or you will live it out. nt

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Response to midnight (Original post)

Fri Oct 19, 2012, 10:20 AM

2. I love how this mortgage fraud is still being described as consumers buying what they

couldn't afford... When in reality the banisters and their economic hit men designed the fraud from the inside....

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Response to midnight (Original post)

Fri Oct 19, 2012, 11:31 AM

3. Great article.

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