James K. Galbraith, a University of Texas economist, said: "Phil Gramm's career was as the most aggressive advocate of every predatory and rapacious element that the financial sector has. He's a sorcerer's apprentice of instability and disaster in the financial system." Yes, and he's John McCain's chief economic adviser!
On August 8th 2008, Phil's firm, UBS, agreed, under duress, to buy back $18.6 billion in auction-rate securities from investors, and pay a fine of $150 million. Whatever for? The New York Attorney General, Andrew Cuomo, said UBS had misled customers about the safety of the securities. That's putting it mildly.
When the auction-rate securities market completely collapsed, UBS and other banks left investors holding the bag for billions in losses. Phil said he had nothing to do with that debacle, and, by the way, he was also "unaware" of UBS's $19 Billion in sub-prime mortgage losses! How much can a vice-chairman be expected to keep track of anyway?
Not true. Attacking Phil Gramm and his policies is debating the most important economic issues facing the country. And stop whining, Phil!
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