Why Were Lessons of 1998 Mini-Crash Ignored?
October 21, 2009
by Henry Makow Ph.D.The American financial system almost collapsed in 1998 when a hedge-fund, "Long Term Capital Management" went belly up. In a harbinger of 2008, banks had placed huge derivative bets on the Russian economy with LTCM.
The Fed forced 13 US and international banks to purchase the hedge-fund. Altogether $4.6 Billion was lost.
A PBS Frontline Documentary "The Warning" magnificently shows that although the American (and world) economies are at stake, the Clinton and Bush Administrations refused to regulate the derivative market, and allowed it to grow to an eventual $595 Trillion during the housing bubble.
Not only did they refuse to regulate the industry, they forced out Brooksley Borne, the Chair of the Commodities Futures Trading Commission, who had demanded action.
During the credit crisis last year, former fed chairman Alan Greenspan was hauled before Congress and asked why he had refused to regulate these markets. The documentary shows him confessing that he had been "mistaken." The "world view" that had guided him for 40 years --that markets were self regulating-- had been wrong.
What is shocking, and you can see this for yourself in this amazing documentary, Greenspan is making a Masonic "triangular" hand sign as he offers this confession.
He is signaling to his fellow Illuminati that he knew exactly what he was doing. His confession was bogus.
Similarly, in the same documentary, Arthur Levitt, the Chair of the SEC at the time, makes the same sign while confessing he should have listened to Brooksley Borne.
In other words, this dangerous high wire act is Illuminati policy. Brooksley Borne says in the documentary that we can expect more financial turmoil until the derivative markets are regulated.
Alan Greenspan, Robert Rubin and Lawrence Summers were in charge in 1998. Their then- deputies, Timothy Geitner and Ben Bernanke are in charge now. All are Fed or Goldman Sachs alumni. This is like asking cocaine addicts to regulate drugs.
The hand signs and the fact that no significant regulation has taken place, suggests that derivative market turmoil will be used again to bring down the US (and world?) economies, cause a depression and usher in the New World Order. Certainly "a new world order" was on everyone's lips during the last crisis.
PBS is virtually a province of the Rockefeller empire. Yet this Frontline documentary is superb, what journalism should be. Apparently, the Illuminati is willing to stoke the anger of the US public at their mainly Jewish financial underlings.
Essentially the American people are disenfranchised. Their leaders are Freemasons who are dedicated to integrating the country into a world government run by Illuminati central bankers. This integration requires that the American standard of living (and economy) are downsized, and this is what is happening now.
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Comments for "Why Were Lessons of 1998 Mini-Crash Ignored?"
Mary said (October 23, 2009):
Like Rick,[below] I gotta agree with this.
"This integration requires that the American Standard of living(and the economy)are downsize and this IS what is happening now". Once again, you are right on target.
I've been saying for years that the standard of living has dropped dramatically over the past 20 years, but we're like frogs in boiling water because the constant sales allow us to still have our cake and eat it too. It saddens me that customer service is so poor. The grocery stores in my area have stopped placing bags in the cart for customers unless you're elderly or disabled. I walk into Ross and other bargain basement like stores and it bothers me that no one can help customers find anything, shelves are messy and clothes are on so many long racks that it's tiring to go through them. There's no such thing as browsing through them, and they're overwhelming for older people.It's insulting, like inviting someone to your house and telling them ,"After you find something in the kitchen to eat, join me in the living room." Customer service was truly about service and it used to be a noble thing to be a shopgirl. Now it's a cattle call,and with the ascendance of class conscious third world immigrants used to baazars and no customer service (or even manners) into managerial positions, it will be the norm.Our children are used to it, and don't expect better. That's scary.
I worked in retail and know that the constant sales (before the economic crash) more often than not screw the employees and small business owners. (Please support independent businesses and craftsmen)Sales used to be special occasions and not daily events, but Americans have been living off credit cards and making salaries that don't allow them to buy anything at regular price for years. If the only way a person can furnish their house and purchase regular items like books, is because it is on sale, then that person doesn't earn enough money. What happens if the sales stop and things are sold at regular price? Pauperhood,real fast.And again, because there are so many immigrants who are used to this way of living, they won't try to change anything when they're in control. I'm not anti-immigrant, but I do thing it's out of control, and that the immigration regulation laws aren't good.
Rick,I don't live in Florida, but I've heard about the decline from family who've lived in Florida for three generations.if you could explain how being biracial is related to crime I'd appreciate it.
Best,
Rick said (October 22, 2009):
You said: "This integration requires that the American Standard of living(and the economy)are downsize and this IS what is happening now". Once again, you are right on target.
I moved to Hollywood, Florida over twenty years ago. I did so, just to get away from the chaos, crime and insecurity of Miami. Well, today, Hollywood is nothing but an extension of Miami-Dade County. Sadly, the low-lives and the thousands and thousands of illegals, have taken over the place. So bad, the mayor was robbed at a gas station while paying for gas. A police car was broken into and the computer and gun were stolen. Drive by shootings have become the norm. Sections of Hollywood, a once great suburb to raise children and have a family, now looks like the "ghetto's" just few miles south(Miami).
Politicians have joined the crooks and few of them are in prison and others awaiting trials. I predict that in just 5 short years down the road, this entire Country will make a "third world Country", look like paradise. The speed in which this "demise" is taking place, is absolutely shocking and no one is there to stop it.
This was obviously well thought out and design to give exactly the results is giving. Americans, true Americans, seemed to have disappeared. They are vanished, gone. These inter-racial, inter-faith marriages, have turned this once great Country, into a no man's land. Our only hope, is that this will precipitate the coming of Our Lord and Savior Jesus Christ and we will be out of this impending chaos, soon to take over the entire world.
Becky said (October 21, 2009):
Henry--the illuminati hand sign--could this be construed as 'giving us the finger'??? Because that is exactly what they are doing. And yes, I do believe they want us to rebel--then they could lock up those who do not follow blindly then they can proceed with their NWO. It is not only America--Canadians are just as disenfranchised. When was the last time we had any impact on our government. We are just hear to be robbed and herded.
Henry Makow is the author of A Long Way to go for a Date. He received his Ph.D. in English Literature from the University of Toronto. He welcomes your feedback and ideas at
Jeff said (October 23, 2009):
I was very interested (as ever) to read your take on the above. What you say about Alan Greenspan making a triangular hand-sign is enlightening (with no pun intended!) I say this because I've recently noticed a number of politicians using this pose when speaking (Gordon Brown is a notable exponent), as indeed, do a lot of BBC reporters: it looks so forced, so false, that I thought it must have some esoteric significance. (The fingers and thumbs are extended, tips touching and the only difference in the pose is that the triangle is inverted in front of the speaker. This female-genitalia simulacrum is highly suggestive in its own right.)
Thank you very much for confirming my suspicions.