Monday, October 13, 2008

The market crash and the Jews?

In previous global financial crises, especially before WWII, the Jews were openly blamed, and this fitted in with popular anti-Semitic stereotypes. Today, while there is no doubt a lot of Jewish involvement in Wall Street, these accusations are not voiced openly in the USA, but are nevertheless present. When Lehman Brothers defaulted and was allowed to collapse by the US Govt. there were several comments about it being a Jewish firm. In fact, although founded by the Jewish Lehman Brothers of Montgomery, Alabama, in 1850, the firm was sold and has not been controlled by the Lehman family since 1969.
Similarly the companies largely responsible for the credit crunch, Fannie Mae, Freddie Mac (both under quasi-Federal control) and American Insurance Group (AIG) are all non-Jewish owned. AIG was founded in Shanghai in 1919 by Cornelius vander Starr and was run for many years by Hank Greenberg, but he was replaced in 2005 by Robert Willumstad. Of course, these facts won't stop the anti-Semites from believing otherwise.
One person who has been the butt of much comment is Democratic Congressman Barney Frank, a Jew who was largely responsible for ensuring that these institutions opened their books to millions of low income people, who it turned out were ultimately unable to repay their mortgages, hence the huge number of defaults. A nice sentiment, but inappropriate in the capitalist world. Trying to make the capitalist market adapt to socialist sentiments has been the undoing of many financial systems.
When people call for the real culprits of the financial meltdown to be named and punished, as Sen. McCain said he would do in a speech yesterday, it sounds curiously like a call for anti-Semitic action. But, maybe I'm too sensitive. When asked if McCain could do this, an expert on Fox scoffed, since he said that there are several stages of the crisis, the subprime mortgage breakdown, the bank failures from giving too much easy credit, the stock market crash, and the lack of liquidity. He said that much of the latter part of this crisis has probably more to do with very wealthy traders in Dubai and Riyadh manipulating the stock market and making more millions on stocks by selling short (betting that stocks will decline). This tactic has been declared illegal by Pres. Bush and is being enforced by the SEC, but that is in the USA, not abroad. So the evil of stock market manipulation has more to do with Gulf Arabs than with American Jews. Only now that the G8 and G20 have met is there unanimity that no one country will seek to improve its situation at the expense of others (for how long will that last?).

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