Tuesday, September 29, 2009

GREED v. POWER: WHAT CAUSED FISCAL CRISIS IN AMERICA

Los Angeles CA. Full Disclosure Network® presents B. Scott Minerd, Chief Investment Officer of Guggenheim Partners provides his insight on many of the critical issues facing America and California in a one hour video interview for cable television conducted by Leslie Dutton.

Guggenheim Partners is a diversified financial services firm with more than $100 billion in assets under supervision. Previously he was a managing director for Morgan Stanley and later Credit Suisse, where he oversaw fixed income credit trading in the United States, Europe and Asia.
In the six segments presented here Mr. Minerd outlines the causes, effects and solutions to the financial crisis that emerged in late 2008 at the end of the Republican Administration of George W. Bush and is now escalating under the Democrat Administration of President Barack Hussein Obama.

Segment #1 Insolvency, Public Indebtedness, Sale of Public Assets (8 min)
Scott Minerd describes government “solvency” and comments on the current threat of state and local “insolvency” and possible solutions. Other issues covered are: Toll Roads, Electorate Ignorance, Education, Lease Backs, Legislative Priorities, Public Unions

Segment #2 Federal Intervention, Regulations, Fees & Taxes (8 min)
Minerd points to where government has re-paid massive debt in the past and offers confidence in the electorate’s backing for such measures, while elected officials appear to be disinterested in supporting the solutions needed to resolve the crisis. Other issues covered here are: Socialism, Free Market Capitalism, Massive Inflation, Fed Policies, Individual Responsibility, Creation of Crisis

Segment #3 Government Subsidies, Accountability, TARP (8 min)
It is impossible to expect that government is capable of providing accountability on the massive TARP programs and “bail-outs” according to Minerd who discusses allocating capital efficiently in a Free Market vs government environment. He maintains that fraudulent behavior should be punished to the extent of the law. Other issues covered: Housing Market Collapse, Victim Mentality, Fraudulent Behavior, Free Market Solutions, Government Subsidies, Unethical Activity

Segment #4 Personal Responsibility & Political Correctness (8 min)
Vote-hungry politicians rush to exploit irresponsible homebuyers with promises of government charity that created exorbitant home prices and homeowners without ability to pay the generous irresponsible lenders. This is a short summary of Scott Minerd’s assessment of the current predicament and collapse of the housing market. Other issues covered: Personal Responsibility, Manipulating the System, Lower Living Standards.

Segment #5 Responsibility, Government vs Private Sectors, False Promises (8 min)
Scott Minerd describes how management failed the American automobile industry and now, elected officials are failing the public employee sector. He predicts a massive crisis at the local level when lifetime health care benefits start to kick in for public employees threatening the solvency of municipalities and school districts. He describes what he says are “easy” solutions to the momentous problems. Other issues covered: Business Exodus, Higher Taxes vs Raise Retirement Age

Segment #6 Solutions: Greed vs. Power, The Decline of America (8 min)
In this final segment Scott Minerd summarizes the long-term crisis facing U.S. cities and schools, where costs will outstrip ability of pay. He points to the cause of the crisis and the role of the Federal Government. Then he predicts what will happen if the policies are allowed to continue without reversal or limitation.

Please let us know what you think about the following questions by posting in the comment section below.



  1. Do you think the current economic emergency could result in interventions that could lead to the end our American way of life?

  2. Do you think that it is unrestricted Free market Capitalism or Government Policies that are encouraging lenders to make bad loans?

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