Man Who Listened To Fred Mishkin's Advice, Will Be First To Be Criminally Charged For Great Depression 2

Tyler Durden's picture

The place where the global crisis, culminating as a result of 30 years of cheap money, began, Iceland, may well be the place which sees the first ever criminal conviction stemming from the Depression v2. Globe and Mail reports that Iceland's former prime minister has been referred to a special court, which could make him the first world leader to be
charged in connection with the global financial crisis.

Lawmakers voted 33-30 to refer charges against former prime minister Geir Haarde for allegedly failing to prevent Iceland's 2008 financial crash that toppled the government, brought protests and crippled the national currency.

The special court has never before been convened. The court handles cases in which the parliament, the Althingi, decides to act against ministers on their handling of duties.

Mr. Haarde, former prime minister and ex-leader of Independence Party, is no longer in parliament. He did not run in the 2009 elections.

Iceland, a volcanic island with a population of just 320,000, went from economic wunderkind to fiscal basket case almost overnight when the credit crunch took hold.

After dizzying economic growth that saw banks and companies in this tiny Nordic nation snap up assets around the world for a decade, the global financial crisis wreaked political and economic havoc in Iceland. Its banks collapsed within a week in October, 2008.

Frankly we couldn't care less about Mr. Haarde. We are confident he will get his just deserts. What we would like to know is when will someone finally charge his "advisor", former New York Fed, and current Columbia professor Fred Mishkin, in the Hague, for hate crimes against world leverage, and for providing precisely the advice followed by the Iceland PM, that resulted in not just the collapse of the tiny Volcano-riddled country, but was the first domino to set off the discovery that all of the European periphery is now completely and totally insolvent. We refer of course to Mr. Mishkin's 2006 report "Financial Stability in Iceland" in which the then-Fed member observes: "The economy has already adjusted to financial liberalization, which was already completed a long time ago, while prudential regulation and supervision is generally quite strong." Less than two years later the country was bankrupt.

For much more on Mishkin's involvement in the financial crisis, we can not recommend enough the upcoming movie Inside Job, which destroys not only Napoloen Dynamite Sr.'s reputation, but that of his current boss, the Dean of Columbia Business School, one Glenn Hubbard, in a way that has to be seen to be believed.

The clip below is from Inside Job.


h/t Brian

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
bugs_'s picture

I call Paul Krugman to the stand.


themosmitsos's picture

I call Greenspan to the stand

The 22nd Prime's picture

I call your Krugman, raise your Greenspan, and am all in on a Nuremberg II in my wettest of fantasies.

Wet guillotines, bitchez. 

Votewithabullet's picture

You'd better call Greenspan to the stand quick cuz that nigga is old. Hes fucking older than Volker. Frankly God's gonna have to do it cuz it aint gonna happen here.

Votewithabullet's picture

John McCain wants to prop Greenspan up after he dies he loves him so much.

Bartanist's picture

McCain's economic guru is Phil "Enron" Gramm ...

... but McCain's family business is governing America toward ruin.

skohiu's picture

may be seeing a lot more "heart attacks" in the near future......

Freewheelin Franklin's picture

Yeah, they'll all be buried right next to Ken Lay.

Lionhead's picture

Why not call Lori Ann LaRocco Senior Producer at CNBC to have all the above & Mishkin appear on air to esplain their views. You can reach her on Twitter here:

Give her your tweet; you may even end up on her Rolodex.... ;)

tmosley's picture

Give him a viking funeral.

While he's still alive.

DoChenRollingBearing's picture

Iceland is now in a position to do the world a great service!

They summon all the crooked b@$^@>ds from .govs and banksters all over the world, put them on trial in their Special Court, load 'em into dump trucks, and throw them into whatever volcanoes are up and running.

Nobel Peace Prizes as far as the eye can see.

andybev01's picture

...or put them on a broken-off section of ice shelf and set them adrift in a warm current.

Make sure to set up a live feed so we can watch as it melts.

tip e. canoe's picture

tyler, caught a typo per fred :
"Financial Instability in Iceland"

themosmitsos's picture

Once upon a reality, they used to call it treason.

carbonmutant's picture

It still is... wait til November...

Fox Moulder's picture

And then? Vote the Republicans back into office? Oh wait, they are the ones who got us into this mess.


Tea Party? Oh wait again, it has been comandeered by the Repubs.


Re-elect Democrats? Wait wait wait, there are making it worse.


How many different places can Ron Paul run for office?

nmewn's picture

Is Ron Paul closer, philosophically, to Dems, Pubs or the people of the Tea Party in your opinion?

Fox Moulder's picture

Well, he's registered Republican isn't he? Do you think Sarah Palin even knows who he is or could state his philosophy or positions?

nmewn's picture

Let me try again.

>>>In your opinion<<< which is Paul most like...Tea Party, Pub or Dem?

Fox Moulder's picture

I don't know how my opinion fits in here, but he is probably most aligned with the original TP. I haven't kept up since Palin decided to latch onto it.

nmewn's picture

Palin does not control the Tea Party. No one can...that's what's cool about started from the ground up. Palin did not ask people to send in tea bags to the White House & Congress. She did not organize the march on DC.

If I may be so bold as to speak for them...we are just as pissed at the pubs (if not more so) as we are the dems. They are most assuredly fiscal conservatives and individual rights advocates.

Thanks for the honest answer.


Fox Moulder's picture

Maybe I'll take another look. I went to the first protest in Sacramento but lost interest as it seemed to be taken over be recycled Repubs.

Hedge Jobs's picture

tea party has been hijacked by the neocons and the MSM like every other major political movement in the US. It provides the illusion of "change" and for the overwhelming majority of grass roots suporters this is what they want and expect but in reality its exactly the same people pulling the strings. repubs? dems? t party? its all the same bankster lobbyists behind the scenes.

nmewn's picture

Neocons???...ROTFL. There is nothing socialist about it.

The acronym T.E.A. stands for Taxed Enough Already.

To the best of my knowledge the "idea" has never died, it smoldered underneath the surface until rekindled by a Santelli rant on government sanctioned moral hazard.

This is why it was attacked so ferociously from the start by the MSM and the oligarchs. Without government subsidies (from taxation) some corporations will die along with the anal lobbyists that funnel the subsidy (the taxes) back into politicians pockets.

They were called gun nuts & racists because they are neocons seeking world domination?...LOL...they were called these things to stop them because they are a threat to statism.

I'm going to charitably say you are misinformed sir.


Freewheelin Franklin's picture

I have only one question for any Tea Party candidate:


"What is the difference between price inflation, and monetary inflation?"


Any Libertarian Party member will answer that question in detail. I'm not so sure about many of the TP candidates, or supporters. If any candidate is going to run on fiscal policy, he/she better have some clue as to what monetary policy is, and I just don't see that with the TP of late. Just a lot of social conservative bullshit. And no, my opinion is not based on the MSM, it is based on my own interactions with TPers on various libertarian blogs. The RP C4L were the original TPers. They have been hijacked by a bunch of social, Christian conservatives opportunists. There's plenty of room in the LP for C4L.

nmewn's picture

If your asking me...price inflation is a rise in the prices of goods & services caused by a shortage of those goods and services...paying higher prices to get something that is getting scarce. Nothing is scarce in todays market. Monetary inflation is your current dollar dropping like a stone in value because of a surplus of dollars in the hands of purchasers. This of course is not the case now. This is deflation.

Did I pass? ;-)

Libertarians have more in common with the Tea Party than either of the other I guess I don't see your point.

Freewheelin Franklin's picture

My point is, the TP covers a wide assortment of disgruntled Republicans. Like I said, the C4Lers are the "legitamate" TP, and I'm sure, know monetary policy, such as yourself. The problem, as I see it, is there are more and more of the social conservatives being attracted to the TP who have little to know understanding of monetary policy. Libertarians have absolutely nothing in common with social conservatives. I can't speak for C4L, but the LP will swiftly show these social conservatives the door. The C4L is more concerned with getting elected, and seems to be willing to sacrifice principles for results. That's the primary difference. But, the LP holds something like 158 public offices, mostly local and county level, and are building from the ground up.

nmewn's picture

Well, the way I see it...the first order of bidniz is to get the statist/socialist/progressive/marxists (whatever they call themselves today) the hell out of power.

We can work on the issues not concerning fiscal sanity later.

As an FYI...the TP is taking down the old "dogs" on the right too. I think Bennett in Utah would qualify as a "social conservative"...gone...toast...fini.

Just sayin.

By the handle...ain't seen that one in a while...takes me back ;-)


StychoKiller's picture

Ron Paul is a Libertarian, so that makes him a RINO.

Pseudo Anonym's picture

crimes against banksters? That's what I want to know.

Dr. Engali's picture

And in other financial news today Goldman Sachs said they are going to take the same side of the trade that they recommend to their clients.

infotechsailor's picture

Birgitta Jonsdottir for PreZ.

panika2008's picture

30 years of cheap money? Come on, real interest rates never dropped below zero in the US between 1981 and 2002. 1981-1990 it was more than 2pp above inflation, as well as 1994-2000.

If you want to see real cheap money uber pump, see 1974-1980, where real rates were constantly below inflation, sometimes as much as 3pp below inflation!

Dr. Acula's picture

If interest rates are low, it means money can be borrowed at cheap rates. If interest rates are high, but inflation rates are also high, it means that money is being created out of nothing - i.e. given away for free. Either way it is "cheap money".

The following scenario would not involve "cheap money". With commodity money and without the use of fiat money forced upon us through various laws, inflation would be very small (e.g. gold can practically only be mined in small amounts compared to the amount already accumulated over centuries - not so with a printing press). Without fractional reserve banks committing bailment fraud and creating fiduciary media out of nothing, the money supply would be stable. Without a central bank with special legal privileges fixing interest rates at abnormally low values, i.e. fixing the price of loanable funds, the interest rate would be set by innumerable competing lenders and borrowers at a natural rate - similar to how the price of potatoes is determined.


Spalding_Smailes's picture
'Inside Job' Points a Finger at Wall Street Conflicts in Academia and More

Mr. Mishkin's reason for leaving the Fed, he says in the new documentary "Inside Job," was that he "had a textbook to update." The more likely reason was that Mr. Mishkin was about to be called out on his role as the board member responsible for the Fed's economists and research, and disastrous predictions he made as a paid researcher for Iceland's chamber of commerce, a point made by the movie's writer and director, Charles Ferguson.

Mr. Mishkin isn't alone. As "Inside Job" notes, research and for-hire reputations are a big business. Companies including Charles River Associates and LECG Corp. are for-profit companies that sell the services of academic experts.

Until now, the conflicts of interest among academics who moonlight as well-paid corporate advisers haven't been page-one material. But "Inside Job" breaks new ground by exposing the failure of universities to regulate the integrity of their biggest stars.

NotApplicable's picture

I've got an old copy of his text book. If he really wants to update it, he just needs to change the title to "Keynesianism is a fraud"

StychoKiller's picture

Gasp!  You mean there's EVEN MORE BLAME to go around??  The Horror!

Bruce Krasting's picture

We hold these guys up as Icons. They are learnered to be sure. That means nothing. Lok at the results all around you.

Ted K's picture

But what are these really the results of???  Government bureaucrats woke up one morning and decided to flood the system with cash??? Or Bureaucrats who were forced with no other choice when a system collapsed from years of big bank lobbyists stripping the system of regulations and controls to protect the public from corruption.  As much as I dislike Greenspan, I think the boys in your industry playing CDS games with insurance policyholders money at AIG etc... are much more to blame.  Have you forgotten how many times your pals on Wall Street bashed Greenspan on CNBC when he wasn't cutting rates fast enough???  It wasn't main street whining for rate cuts.

StychoKiller's picture

If you start pointing fingers at all of the guilty, you'll soon run out of fingers!

Let's start with President Wilson, the imbecile that signed the creation of the Fed into Law (Cerberus unleashed!)

FDR:  Practicing LTT (Let's Try This!) Politics on the USA, and destroying the 3rd branch of govt (Supreme Court) with his crony appointments.

France and Great Britain:  Insisting on onerous reparation terms against Germany, leading directly to the rise of Hitler and the NAZI party.

Get the picture?  The rabbit hole is not only deep, but it's full of twisty passages, all alike.  (There's a small bottle here)

Perseid.Rocks's picture

Crimes against humanity, domestic terrorism in destabilizing the economies and governments.. pick your crime, there seem to be many to choose from.

Internet Tough Guy's picture

What about Bob (Rubin)?

nmewn's picture

+ 1,000,000

I believe the expressions were "we've created a new economy"..."no more recessions" from here on out..."tamed the business cycle"...blah blah...blah blah blah.

And as another parting gift to the country, before I move on to Citigroup to collect my rewards for securitization, I give you NAFTA.

Outstanding Bob...who's side you on...Bob?


Arkadaba's picture


I'm not sure I agree with the opening sentence:

The place where the global crisis, culminating as a result of 30 years of cheap money, began, Iceland....

The global crisis did not begin in Iceland. Better might be:

The place where the ramifications of the global crisis first saw the light of day, Iceland ....

Yes I know I may be nitpicking but words matter.


ColonelCooper's picture

I would say that since you, I and everybody else here understood the MEANING of the sentence, you are nitpicking.

Miss Expectations's picture

What is it with Sociopaths?  They (Mishkin) always seem to smile no matter what's being said.

Here's Charlie Rangel doing it, too: