Robert Scheer: The Man Who Shattered Our Economy

[marmar]

from truthdig:



The Man Who Shattered Our Economy

Posted on Nov 17, 2010
By Robert Scheer


Rejoice, the housing market is back. Sandy Weill just picked up a humdinger of a wine vineyard estate in Sonoma, Calif., for a record $31 million, so the foreclosure crisis—which the former CEO of Citigroup did so much to create when he successfully lobbied then-President Bill Clinton to sign off on radical deregulation of the banking industry—must be over.

After all, Weill wasn’t desperate for shelter, already being in possession of a 14-acre estate in über-exclusive Greenwich, Conn., and a 120-acre spread in New York state’s Adirondacks. Let’s also not forget the penthouse that he bought for $42.4 million in New York City in 2007 as the banking collapse he helped engineer was fast developing. Not too shabby for a guy who ran Citigroup into the ground by trafficking in what proved to be toxic mortgage-based securities.

Thanks to legislation that Weill got President Clinton to sign off on, Citigroup was allowed to become too big to fail, and when fail it did, the taxpayers had to bail the humungous bank out—to the tune of $50 billion in a direct subsidy and $306 billion more for the housing mortgage-backed securities Citigroup was holding. The Treasury still owns a good chunk of Citigroup common stock, now trading at a paltry four dollars and change per share. However, like all of the other top dogs involved in this scandal, Weill has emerged from a housing crisis that has impoverished tens of millions of Americans with his own personal fortune intact. Indeed, as evidenced by his vineyard purchase, he has quite a bit of money to throw around.

Although the value of most housing in Sonoma County, in the heart of the wine country, is down 30 to 50 percent, Weill was willing to pay close to the asking price for his new property. And why not? As the San Francisco Chronicle website quoted one Coldwell Banker real estate agent as saying, the sale “is not an indicator of an emerging real estate recovery, but rather the ability of the world’s wealthiest individuals to buy what they desire.” .............(more)

The complete piece is at: http://www.truthdig.com/report/item/the_man_who_shattered_our_economy_20101117/

[midnight]

1. This guy took creating a need to depression era levels. A need to unload

devalued realestate so guys like this could come in and clean up....

[dkf]

2. Yet look where it all started...deregulation by Clinton.

[FormerDittoHead]

3. Let's demonize the system, not the people.

Making this guy out to be the devil is wrongheaded.

First off: Clinton, Clinton, Clinton, Clinton. I get it. But who passed the law for him to sign? Who didn't filibuster it? Where has Congress and Obama been in reinstating Glass-Steagall?

Was Weill the only one who was lobbying for the repeal of Glass-Steagall? I don't think so.

I get that none of these players have clean hands, but there is no "Dr. Evil".

Creating a simplistic explanation of how the financial crisis happened by demonizing two men isn't going to fix the problem that remains.

The problem is that Democratic Presidents / Congress are afraid to piss anyone off. Can't piss off the rich, pharma, military contractors, banks, oil companies, coal mines, farmers, food processors, etc., etc. The reason it's a problem is that the collected goals of all of these special interests are independent of the general goals of the country, and in many cases run counter to it.

Ambitious people are always going to try to take advantage of the system. The system is broken, however, in that its so easy to influence and game the system.

[fasttense]

4. So, when people abuse and use the system for their own personal gain while

conning and bankrupting their marks, we should just fix the system and ignore the crime?

Pinochet just took advantage of a system, whereby he got the US to fund his takeover of Chile. But he was not a bad guy. Though he did disappear a lot of his countrymen, he's not a bad guy. He just used the system that was there.

You can say that for just about any crime. The bank robber merely used the system of easy handguns access and easily located banks. Bernie Madoff just used the system that was in place. The bushes only used the system that was there to torture POWs.

People have to take responsibility for the consequences of their actions even if they use the system. If they use the system to hurt others they should be prosecuted if the laws are on the books. Bailing out these people or ignoring their crimes only perpetuate further crimes.

[Demeter]

5. Thank You

You said that so much more politely than I ever could.

[glitch]

7. What Demeter said. The idea that we can't both fix the system and hold the crooks responsible

is bizaare. Also: holding someone responsible is not demonizing them anymore than criticizing is hating.

[FormerDittoHead]

9. OK then, what law(s) did Sandy Weill break?

>If they use the system to hurt others they should be prosecuted if the laws are on the books.

What law did Sandy Weill break that he's not being prosecuted for?

I hope you're not going to say he didn't technically break the law, and that without such a law, the system is broken and it should be fixed to prevent such abuse in the future, because that was MY VERY FUCKING POINT...

[FormerDittoHead]

10. I apologize for my tone. n/t

[Demeter]

6. Let's Be Honest, Sandy Had Lots of Help

There's probably a thousand big fat thumbs in this pie, and they ALL belong in jail, including the top 3 levels of Goldman Sachs and its alumni in government positions.

[glitch]

8. +again. nt