Mr. Pot Calling Mr. Kettle. Mr. Pot Calling Mr. Kettle.

Steve Schwarzman of the Blackstone group blames the Ratings Agencies for the crisis and the historic 'loss of wealth' throughout the world.

Note to Steve. It was not real wealth.

It was a bubble that was created starting in 1996 when Alan Greenspan changed his policy stance towards the markets after a visit from Mr. Rubin. This was around the time of his famous 'irrational exuberance' speech. We can only wonder what was said at that meeting.

Real wealth has substance. It is created by savings and hard work, and is only destroyed by real world events like natural disasters and wars, and of course theft.

The destruction of the real wealth was in the bubble when the middle class was systematically destroyed. This is just the settling of accounts. What we are seeing now is the paint peeling off the rotten economy which the financiers created for their personal benefit.

The ratings agencies and the regulators and the Fed and the media and the Presidency failed in their duties and responsibilities. They failed because they were corrupted. They were enthralled in a deep capture within a climate of fraud and market manipulation. They succumbed to temptation and became participants. And now they are afraid and ashamed of what they have done.

But they were the pawns, the tools. The primary actors are still in place and are still doing their worst for America. Jamie Dimon is on the financial news networks today speaking to the US Chamber of Commerce, weaving a revisionist view of what happened, blaming everyone but the banks in an amazing display of calculated spin.

Until the Wall Street banks are restrained, until real reform is accomplished, there will be no recovery, and the corruption will continue to taint all who come near it. It is already having its way with the new 'reform' administration.


Blackstone CEO: As much as 45% of global wealth is gone
CFA Institute Financial NewsBrief
03/11/2009

Describing the event as "absolutely unprecedented in our lifetime," Stephen Schwarzman, CEO of Blackstone Group, said the credit meltdown has wiped out between 40% and 45% of the world's wealth.

He said credit-rating agencies are partly to blame for the crisis. "What's pretty clear is that if you were looking for one culprit out of the many, many, many culprits, you have to point your finger at the rating agencies," Schwarzman said. Reuters (10 Mar.)