Wednesday, October 21, 2009

Frontline Trash

Earlier this week, I highlighted Frontline's then-upcoming program, The Warning, and its attempt to promote the nonsense of Brooksley Born as an ignored heroine that warned about the financial crash, when she is in fact nothing but a political operative who is an aggressive pro-regulation type that would be in favor of regulating the fit of your underwear.

The program is now out, Michael Labeit suffered through it and left this comment at a post below, which I am taking to the top for everyone to note:
Just saw Frontline's "The Warning." Trash commentary. They blamed OTC
derivatives but failed to even identify what a derivative was, the difference between OTC and exchange derivatives, and identify different kinds of derivatives like CDSs. Garbage.


  1. I watched about 15 minutes of that frontline episode and kept expecting them to interview an actual expert. The job titles were "author", "attorney", etc... Not a single economist. Not a single PhD in anything as far as I could tell. It was a liitle like interviewing sports bar waitresses to analyze the BCS Championship selection process.

  2. Food for thought from Naked Capitalism:

  3. PEU Report,

    What leaves you to believe that Yves Smith would be a better regulator than the scumbags currently in power? How does Yves know that using force to separate commercial and investment banking, or whatever other separation she prefers, is the socially/economically optimal way to go about regulation? What calculation does she use?

    How is there a problem with businesses structuring themselves any way they want so long as they are responsible for bearing the cost of their own failures?