Kasich responsible for bankruptcy that resulted in so-called Great Recession
August 7, 2015
Following the Republican debate on Thursday the establishment media trashed Donald Trump’s performance. The Wall Street Journal asked if America needs an angry leader.
Fox News called Kasich the “dark horse” of Republican candidates.
“U.S. voters are angry about economic and political stagnation. But how many of them want an angry leader? It’s a good bet that as the campaign wears on, a more positive message about how to move the country forward will be more appealing,” Linda Killian writes for the newspaper.
Killian says the “crowd favorite” was Ohio Gov. John Kasich, who offered “one of the most cohesive visions articulated for what he thinks needs to be done in this country and why he wants to be president.”
Kasich “has a positive message about helping all Americans get ahead” and “does not come from a political dynasty.”
He does, however, come from a culture that led the way in destroying the economy: the investment bank Lehman Brothers.
Kasich was the managing director of Lehman’s investment banking division when the company declared bankruptcy in September, 2008. The bankruptcy precipitated the financial turmoil that led to the so-called “Great Recession,” in fact the Second Great Depression.
Lehman was at the forefront of the subprime crisis. From 2004 to 2006, it saw a 56 percent surge in revenues from mortgage-backed securities and contributed substantially to the housing bubble that would take down the economy.
“The culprits blamed for the failure of Lehman Brothers in September of 2008 included the company’s top executives, their accountants, their highly-leveraged loans that had started going bad, their success at hiding those bad loans by cooking the books, and their lenders demanding more and better collateral,” writes Bob Adelmann, citing Anton Valukas who wrote a report on the investment bank failure.
As a managing director Kasich was one of those top executives responsible for the reverse engineering and book-cooking that disguised the bank’s toxic financial condition. Kasich and the other executives were not held responsible for the collapse that eventually led to a taxpayer funded bailout and giveaway to banks, including Goldman Sachs, Citigroup, Morgan Stanley, Bank of America and dozens of others.
The Wall Street Journal and others praising the former bankster’s performance during the debate on Thursday did not mention his role in the financial crisis.
“John Kasich may not have won the first GOP debate outright, but he used his home-field advantage, complete with rousing cheers, to tout his resume, sell his philosophy and boost his name-recognition,” reports USA Today.
That resume includes the destruction of Lehman Brothers and its contribution to the current economic situation that has negatively affected the lives of millions of Americans.
This article was posted: Friday, August 7, 2015 at 10:01 am