In a hilarious display of the corporate media's complete inability to do serious journalism, Fareed Zhakaria asked economic mogul Robert Rubin how to save the economy - omitting the rather annoying fact that Rubin was almost single handedly responsible for bringing the economy to its knees. Writes Robert Scheer:
Rubin and Summers were responsible for forcing Brooksley Born out of the Clinton administration because as chair of the Commodity Futures Trading Commission she had the temerity to suggest regulating the mortgage-backed securities that eventually proved to be so toxic. Instead, Rubin and Summers pushed the Commodity Futures Modernization Act, which Clinton signed into law in his last month in office, categorically exempting those suspect derivatives from any government regulation.
By then, Rubin had moved on to a $15-million-a-year job at Citigroup, which became a prime exploiter of the subprime housing market. As a result of its massive involvement with toxic securities, Citigroup, with Rubin in a leading role until early 2009, had to be bailed out by the federal government with a $45 billion direct investment and a guaranteed Fed protection for $306 billion in potentially toxic assets.
If our journalists are incapable of connecting very simple dots like this, what hope is there that we avoid another fiscal crisis that could plunge the US back into recession?
Not much, I fear.