How Bubble Barons Protected Their Influence While the Economy Tanked

http://www.alternet.org/investigations/146462/how_bubble_barons_protected_their_influence_while_the_economy_tanked

AlterNet citizen journalists investigated bubble barons who got rich as the rest of the economy tanked. The project shed light on the barons' power delusions and toll on society.

April 16, 2010


Following the deadly mine explosion in West Virginia last week, the CEO of the company that owned the mine quickly emerged as a sort of Dickensian villain in media reports. Massey Energy CEO Don Blankenship’s cavalier, profit-obsessed approach to mining had led him to dismiss pressing safety concerns at his mines. He had called safety regulators “as silly as global warming” and ordered managers to spend more time “running coal” and less time building ventilation structures. One miner told ABC news that working for Blankenship was "like living under a hammer. It's about the bottom line; we all know that."


Blankenship was the hammer, but whose bottom line was he looking out for, exactly? The answer is somewhat surprising.

One of the handful of major investors in the coal company is Stanley Druckenmiller, a billionaire hedge fund manager researched as part of last month’s AlterNet/LittleSis.org investigation of the bubble barons. Druckenmiller sits on the board of the Environmental Defense Fund (EDF), an organization that would seem to be opposed to Massey’s exploits. He apparently saw the company’s abysmal safety record as no cause for concern before throwing roughly $200 million at the company, one of his biggest investments as of December 2009. And he was not put off by the company’s controversial environmental practices — Massey is a leading practitioner of mountaintop removal mining, and Blankenship a leader in the climate change denial movement.

The 300 citizen journalists who joined our investigation of the bubble barons — elite billionaires like Druckenmiller who saw astronomic gains in wealth over the housing bubble years — made over 1,200 of these kinds of connections, linking the wealthy billionaires to politicians, foundations, families and businesses, and collectively mapping a network that controls hundreds of billions of dollars in capital. In doing so, they parted the corporate veils that distance the barons from the business activities that enrich them, discovered the odd philanthropic habits they share, and developed an illuminating picture of the strange world they inhabit.

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