Pt. 2 of Bill Black interview about control fraud, “fraud controlled from the highest levels of financial institutions and the government.”
The US government could have forced financial reforms as a condition of the bailouts. But both Bush and Obama did nothing. Main Street has suffered, while financial institutions have prospered. The finance sector is a huge parasite. It transfers money from the poor to the wealthy.
Larry Summers was an architect of neo-liberalism and of the financial disaster. Geithner failed completely as a regulator at the NY Fed. Bernanke had already failed under Bush. None of them saw the crisis coming (even though multiple financial blogs did) They’ve rightly been called “The Wrecking Crew,” and were part of the Predator State. So what did Obama do? He promoted them and endorsed their policies.
Black says when he explains this to Indonesians over 50, they have no problem understanding our crony capitalism, as this is what happened under Suharto. As for the specious argument that the parasites are so deeply embedded that we don’t dare kill them, he laughs and say if we don’t, things will get increasingly unstable, because “that’s the nature of the beast.” If things continue as they are, the US will end up like Indonesia under Suharto.