Day 6 of the "Why Won't #Krugman Post On Bill Black?" Watch
BLACK: "Lehman’s failure is a story in large part of fraud. And it is fraud that begins at the absolute latest in 2001, and that is with their subprime and liars’ loan operations.
Lehman was the leading purveyor of liars’ loans in the world. For most of this decade, studies of liars’ loans show incidence of fraud of 90%. Lehmans sold this to the world, with reps and warranties that there were no such frauds. If you want to know why we have a global crisis, in large part it is before you. But it hasn’t been discussed today, amazingly.
(Via FDL to Hamsher's great credit. That said, surely holding the rentier elite accountable for crimes is not just one issue among others? As important as, say, the Plame Affair?)
But I'm still waiting for a Krugman column that even mentions Bill Black. Surely accountability and transparency -- not to mention a financial system that doesn't suck all the blood out of its host -- demand that the rule of law be enforced? And what does one have a bully pulpit at the Times for, anyhow?
NOTE Via Ryan Chittun. Here's a live blog of the hearing.
NOTE For the great Bill Black on accounting control fraud, see his interview with Bill Moyers. He's making the case Krugman need to debunk, refute, or accept (and then take the appropriate action).