HopeTracker| If you follow financial industry politics — and we all should — President Clinton takes a big mea culpa on ‘derivatives’ on ABC News ‘This Week’. Details are in Political Punch Clinton: I Was Wrong to Listen to Wrong Advice Against Regulating Derivatives’.
Derivatives are the largely undefinable, inexplicable financial instruments that acted as key player in nearly bringing down the global economy. Assured that they were a vanity investment confined to a few big players, a cast of America’s biggest financial geniuses said ‘not to worry’.
It seems that derivatives are a bit like Google’s search algorithm. They had massive influence on our lives but the details were top secret. Why do I have visions of the wizard in Oz this moment?
At least former President Clinton says ‘I was wrong’ about the derivatives debacle. Former Federal Reserve chairman Alan Greenspan, on the other hand, has what can only be described as a ‘senior moment’, considering the entire history of the global financial crisis.
Greenspan absolved himself of absolutely any blame in his handling of events, as the global financial genius god he was believed to be. I’m not sure that Greenspan can define derivatives either. Read Dana Milbank’s column Greenspan reflects on crisis, deflects blame in the Washington Post.