“The Warning” unearthed the hidden history of the worst financial crisis since the Great Depression in the United States. Brooksley Born spoke for the first time on television about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.
“We didn’t truly know the dangers of the market, because it was a dark market,” said Born, who was the head of an obscure federal regulatory agency — the Commodity Futures Trading Commission [CFTC]. Born not only warned of the potential for economic meltdown in the late 1990s, but also tried to convince the country’s key economic powerbrokers to take actions that could have helped avert the crisis.
The documentary also revealed an intense battle among high-ranking members of former President Bill Clinton’s administration and uncovered a concerted effort not to regulate the emerging, highly complex, and lucrative derivatives markets, which became a ticking time-bomb within the American economy.
It is rather shocking to me that a man as clever as Alan Greenspan was considered to be was such a devotee of Ayn Rand. Ayn Rand was an émigrée from the Soviet Union. She had very extreme, laissez-faire ideas which were verging on the anarchic. That Alan Greenspan, known as ‘The Wizard’ because of his superior understanding of economics, couldn’t see through Ayn Rand’s cranky theories is enigmatic, to say the least. — © Mark Alexander
