Politics and the Financial Industry
FIRE ALARM: In 1992 Bill Clinton was running for president – Under George Bush Senior, America had slid into depression. NOTE: Under George Bush Senior America attacked Iraq, “First Iraq War A.K.A. Persian Gulf War, Operation Desert Storm, and Gulf War”.
Clinton promised that he would use the political power of the presidency to rescue the nation. He won the election in November 3, 1992.
In January 1993 a few days before his inauguration two leading members of the financial world came to see him. One was Alan Greenspan, head of the Federal Reserve the other was Clintons new Economic Advisor, Robert Rubin the head of Goldman Sachs.
They told Clinton that his political plans were impossible. He was inheriting a huge government deficit. If he borrowed more money to pay for his campaign promises interest rates would rise, people would stop borrowing and it would be an economic disaster.
They told him that there was an alternative way to build a better society. Let the market do it. Give away the governments authority regulating the markets and let them thrive unrestricted.
Clinton agreed and began to cut government regulations on business. The economy began to boom.
FIRE ALARM: In 1998 Citicorp, a commercial bank holding company, merged with Travelers Group, an insurance company to form the conglomerate Citigroup. This merger was illegal. Laws had been established during the depression in the 1930’s to limit activities between commercial banks, investment banks and insurance companies.
FIRE ALARM: In September 1998 The Federal Reserve gave Citigroup a temporary waiver.
FIRE ALARM: In 1999 Bill Clinton signed the “Financial Services Modernization Act “ – A.K.A. The Gramm–Leach–Bliley (GLB), allowing commercial banks, investment banks, securities firms, and insurance companies to consolidate. The GLB Act led to the deregulation of major financial institutions.
FIRE ALARM: The credit lending market went out of control. The results were witnessed in 2008 when Congress rejected to give Wall Street a $700. BILLION U.S.D. BAILOUT. We watched 1.2 TRILLION U.S.D. evaporate in one day.
RESULT: Many people lost their retirement investments and Wall Street Banks got a $700. BILLION BAILOUT.