The Born Warning

I watched a very disturbing story called “The Warning” on Frontline last night. I urge you to take an hour and watch it yourself. You can watch it on Frontline’s website now.

It is the story of a courageous woman named Brooksley Born and how, way back in 1998, she warned Congress and the American people that the over the counter derivatives market needed to be regulated. Alan Greenspan, Larry Summers, Robert Rubin and Phil Gramm all fought hard against regulation. They won. The Amercian people lost. It is just shameful. I did not know who Brooksley Born was until I saw the story on Frontline.

Even after the hedge fund Long Term Capital Management collapsed in 1998, nothing was done. Greenspan still didn’t think regulation was needed. I didn’t know until I watched this that Greenspan was a huge follower of Ayn Rand. She didn’t believe in regulation of the markets either.

We still don’t have any regulation over the derivative market. It is a $595 trillion market that operates in the dark. Even now, after the economic collapse of last year and the government bailout of the banks, Wall Street is fighting against regulation.

What horrible thing is hiding under that rock?  Someone needs to shine a light on it. I have more questions.

Why isn’t there an investigation of exactly why the economy collapsed so the guilty parties can be punished?

Is Bernie Madoff the only person going to prison?

Why hasn’t anyone given Brooksley Born a medal for what she did? Alan Greenspan should take off his Presidential Medal of Freedom and give it to her.

Why hasn’t anyone turned this story into a movie?

At the end of the show, I sadly concluded that our government is either totally incompetent, horribly corrupt, or both. There is just no other conclusion to be reached. It’s disgusting.

As Paul Krugman says, “We need a better government than we’ve got.”

Watch “The Warning” on Frontline.