Frontline: The Warning – is an in depth look into the foundation that caused much of the current US financial melt down. Basically a ponzi scheme using the unregulated Derivatives market, all controlled by Greenspan and the US Government and abused by all the leading financial institutions from the Fed down. The current issues date back to the early 1990’s and the current meltdown is actually the second since then.
But one woman, Brooksley Born, tried to blow the whistle, but was stifled by Greenspan. “We didn’t truly know the dangers of the market, because it was a dark market,” says Brooksley Born, the head of an obscure federal regulatory agency — the Commodity Futures Trading Commission [CFTC] — who 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. “They were totally opposed to it,” Born says. “That puzzled me. What was it that was in this market that had to be hidden?” (more »)
Though the Derivatives market may be the unspoken foundation of the failure, the current blame has been put solely on financial institutions investing in sub-prime mortgages, but it all comes back to how it’s all tied into the over leveraged and unregulated derivatives market.
This is the full 55 minute show of The Warning aired on PBS on October 20, 2009. Be sure to look into the rest of the PBS Online video series called “The Meltdown” produced by PBS FrontLine.