Tuesday, August 13, 2013

Gnome of Zurich

Former Republican Senator Phil Gramm has an opinion piece in the Wall Street Journal today which blames Bill Clinton inspired mortgage loans to low income households for the global financial crisis. That has been debunked enough. What is stranger is that the Journal never mentions that Gramm made his first post Senate stop a job with Union Bank of Switzerland which nearly went under except for exceptional support from the Swiss government and access to other global central bank relief mechanisms. And it was the investment banking division, not the plain vanilla lending that did the damage. The part that Phil Gramm was in.