Four years after the 2008 financial crisis, banks are behaving more recklessly than ever. - Too Big to Fail and Too Risky to Exist: The American Scholar, Autumn 2012.


30 August 2012

Contact: Stephen M. Apatow
Founder, Director of Research & Development
Humanitarian Resource Institute (UN:NGO:DESA)
Humanitarian University Consortium Graduate Studies
Center for Medicine, Veterinary Medicine & Law
Phone: 203-668-0282
Email: s.m.apatow@humanitarian.net
Internet: www.humanitarian.net

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U.S. Presidential Candidates Focus on Solutions to the Financial Crisis

As the race to the Whitehouse picks up steam, the U.S. Presidential Candidates Focus on Solutions to the Financial Crisis.  The Academy Award winning documentary, "The Inside Job" spotlights challenges during the 1999-2008 period, and the global economic crisis that continues to spiral out of control. [1]

The Timeline:
  • Party like it's 1999.
  • Year 2000 Conversion (Y2K) presents a technology challenge that could shut down the infrastructure of every UN member country. [2]
  • Y2K viewed as a one time global central bank coordinated liquidity infusion to assist remediation, supporting 193 UN member countries.[3]
  • Global strategic plan focuses on exploitation of liquidity.
  • Repeal of 1999 Glass-Steagall, separates commercial and investment banking, established in 1933 following post 1929 Market Crash (1929-33 Reserve bank driven boom period fueled by combined commercial and investment banks). [4]
  • Reserve bank funds transition into financial markets and proprietary trading.
  • 2000 Commodity Futures Modernization Act deregulates OTC derivatives. [5,6]
  • Global markets rally.
  • Tech Bubble and Crash follow 911 shock.
  • Housing market (Financial crimes focus on predatory lending, mortgage and appraisal fraud) [7] used to drive recovery, CDS, CDO debt instruments exploited through unregulated OTC derivatives market. [8]
  • Unregulated shadow banking system expands to $1.4 Quadrillion in 2006. [9]
  • Global Financial markets collapse in 2008, focus transitions to emergency actions to address financial crimes in unregulated markets (2000-2008).
  • Emergency regulatory actions shut down, emergency reserve bank funds transition back into markets (Zero Interest Rate Policy).
  • Global distortions and hyperinflation continues to spiral the global financial system into a deeper crisis. [10]
  • Countries remain in technical insolvency, emergency actions viewed once again as a vehicle for leverage by investment banks.
  • Political and lobbying efforts shut down emergency efforts separate commercial and investment banks (the #1 priority following the 2008 Global Market Crash, combined with restructure).
  • Damage caused by unregulated OTC derivatives market and shadow banking system (2000-2008) can only to be addressed through a 193 country global strategic plan for restructure and debt relief. [11]
  • Objective viewed as a political impossibility, outside another market crisis or crisis responsive scenario.
  • 2012 Efforts continue to target the root causes of the financial crisis.

  1. Inside Job - Prosecution for Financial Crimes Top Priority - FINCEN - Interpol - IBA: HRI-ICC: HRI:UNArts Humanitarian Intervention Initiative, 19 April 2011.  Url: http://www.unarts.org/H-II/ref/4192011OHCHR.html
  2. Year 2000 Conversion: Global Infrastructure Analysis & Contingency Planning: Humanitarian Resource Institute. Url: http://www.humanitarian.net/contingency.html
  3. Public Provision of Private Liquidity Prior to the Millennium Date Change: Federal Reserve Bank of New York, 23 September 2005. Url: http://www.newyorkfed.org/research/conference/2005/liquidity/Sundaresan_Wang.pdf
  4. FDIC: The Great Depression: 1929-1939: Url:http://www.fdic.gov/about/learn/learning/when/1930s.html
  5. Commodity Futures Modernization Act H. R. 5660: Commodity Futures Trading Commission (CFTC). Url: http://www.cftc.gov/ucm/groups/public/@lrrulesandstatutoryauthority/documents/file/ogchr5660.pdf
  6. 2000 Commodities Act Paved Way For Problems: NPR, 20 March 2009.  Url: http://www.npr.org/templates/story/story.php?storyId=102185942
  7. Financial Crimes to the Public: FBI 2005 Report - Mortgage Fraud. Url: http://www.fbi.gov/publications/financial/fcs_report052005/fcs_report052005.htm#d1
  8. IOSCO - Unregulated Financial Markets and Products:Consultation report from the International Organization of Securities Commissions (IOSCO), May 2009 .  Url: http://www.scribd.com/doc/47208358/IOSCO-Unregulated-Financial-Markets-and-Products
  9. Remarks by Jill Considine: At the joint European Central Bank/Federal Reserve Bank of Chicago Conference on “Issues Related to Central Counterparty Clearing” Frankfurt, Germany, April 4, 2006. Url: http://www.ecb.int/events/pdf/conferences/ccp/Considine.pdf  
  10. Y2K=QE2: Charts, Safe Haven. Url: http://www.safehaven.com/article/20661/y2kqe2
  11. H-II Appeal to International Bar Association - Tools for Restructure: HRI:UNArts Humanitarian Intervention Initiative, 26 May 2011. Url: www.unarts.org/H-II/ref/5262011IBAHRI.html

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