Financial Mess: Who’s To Blame?
EmailABC News’ Stu Schutzman reports:
The late great comic actor Oliver Hardy used to repeatedly blame all of his troubles on his dithering sidekick, Stan Laurel. "This is another fine mess you’ve gotten us into," he’d admonish Laurel in movie after movie. Today the British newspaper, The Guardian, admonished an entire nation for this financial mess the world has gotten itself into. Included in the Guardian’s list of the top 25 most culpable for the global economic crisis is the American Public. Yes, there’s plenty of blame to go around, says the Guardian; there’s scandalous Wall Street greed and political inaction, "but if millions of Americans had just realized they were borrowing more than they could repay then we would not be in this mess." For the record, the paper also lashed out at the British calling them, the "credit junkies of Europe."
But the Guardian’s public enemy number one is none other than the former rock star of international economics himself, Alan Greenspan. As head of the Fed, Greenspan, says the paper, allowed the housing bubble to swell and burst and he looked the other way as the financial industry got involved in some very risky business. Other prominent members of this Hall Of Shame include Presidents Bill Clinton and George W. Bush and British P.M. Gordon Brown. The sub prime mortgage meltdown, says the paper, was nurtured and thrived on their watch. Former Senator and John McCain Economic adviser Phil Gramm takes a big hit. It was Gramm, says the guardian, who legally greased the skids for the sub prime securities and credit swaps that brought the worlds financial markets to their knees. His characterization of Wall Street–"to me," he said, "that’s a holy place."
Abby Cohen the "perpetual bull" of optimistic economic analysis is high on the list. A gaggle of CEOs are up there — of AIG, Lehman Bros, Citi, Countrywide, the list goes on and on. Even the elder statesmen of finance, Warren Buffet and George Soros couldn’t escape scrutiny.
"The worst economic turmoil since the Great Depression is not a natural phenomenon," says the Guardian, "but a man-made disaster in which we all played a part."
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arrest Barney Frank and Chris Dodd NOW!!
Posted by: Obama/Biden, hug a terrorist today | January 26, 2009, 1:28 pm 1:28 pm
The Brits are 100% correct. Greed and self supervised financial deals killed the whole world economy. It will take more than 10 years to return to normal situation.
Posted by: Jack | January 26, 2009, 1:45 pm 1:45 pm
Whats sad is that this can be turned around almost overnight.
Take a look at this page.
These charts will show you that the American consumer accounts for the majority of purchases in America and in the World.
So tell me this.
If you put the american consumer out of work or cut their pay by 2/3rds, how in the hell do you expect them to keep purchasing and keep the world’s economy going ?
Virgil
Posted by: Virgil Bierschwale | January 26, 2009, 1:56 pm 1:56 pm
So why isn’t the IMF bailing out these banks? That’s where all the money went in the first place and why aren’t these executives being arrested for fraud just like the other CEO’s that have gone to jail for fraud. Time for the gov’t to take back the FRS, get rid of the central bank once and for all and get this country back to what it is supposed to be, a gov’t for the people by the people.
Posted by: Bev Greenlee | January 26, 2009, 2:05 pm 2:05 pm
Is “The Guardian” Britain’s version of the NY Times? Is it just another liberal rag that tries to get a rise out of everyone? Seems to me, we (as in we of the US) either are admonished because we use the majority of the resources in the world or because we aren’t using them now. I guess we and the rest of the world are going to have to understand that all the stuff (big houses, nice cars, etc.) really isn’t necessary. Yeah, we’re cutting back, get used to it.
Posted by: 29 below | January 26, 2009, 2:28 pm 2:28 pm
“hug a terrorist today”–you’ll be a lot happier if you just accept the fact that we have a new president and wish him well, admit that your president put us in this huge mess–surely you can’t deny that–, quit trying to involve Dodd and Frank and think about the long list of culprits mentioned in the article, and realize that yes, those of who support Obama are suffering through this mess as well–it’s just that we’re able to imagine a solution because we have a president who is able to think clearly about the problems that were dumped in his lap.
Posted by: perumal11 | January 26, 2009, 2:29 pm 2:29 pm
Excuse me for being simple minded but I keep hearing the economists’ suggesting that it won’t get better until consumer confidence rises. There will be no confidence until we see prosecution of responsible parties. For every action you can expect an equal reaction. Someone, a select few profited heavy from all this… who? Where did the money go? This is not rocket science!
Posted by: Ronald | January 26, 2009, 2:37 pm 2:37 pm
I agree w/the poster who said it’s ALL about greed. My complaint? Privatized GAINS…socialized losses!
Posted by: cfraser | January 26, 2009, 2:49 pm 2:49 pm
Think it is time for all of the Earth’s governments to do something logical; nationalize the wealth of the few who profited mightily in the past couple of decades and pay off their banking and corporate debts? Naw lets keep laying it onto the backs of future generations.
Posted by: Ken | January 26, 2009, 3:13 pm 3:13 pm
I have to agree with the writer of this article….BUT We need to prosecute these criminals…that is exactly what they are! The writer was spot on who started the whole mess and how it’s ending……..Screw giving the money to the corporations or wall street and give all the American ppl the money……
here’s my bail out plan:
Give every homeowner/foreclosure’s too at least 100,000 and then we have a real bailout plan that the American people could survive on…it would help the people that are in forclosure to get back into there homes and it would give the banks the cash….and the ppl that have mtg’s and pay them…well they will pay off the mtg’s and once again they will take the extra left over money to pay down debt which once agin aill give the banks thier money….
Posted by: Mary | January 26, 2009, 3:14 pm 3:14 pm
Deregulation by our government and self regulation of our financial institutions has a history over the last 12 to fourteen years. When any industry is allowed to regulate itself trouble is guaranteed. Insurance and medicare are also corrupted from within.
As the nation responsible for much of this deregulation, we should be held as a pattern of what not to allow. Although this was unnecessary and approaching criminal behavior, the entire world now knows and understands how important the United States fiscal health is to the world economic health.
If this ridiculous mess has any value, it should be to prevent deregulation from occurring ever again. The sad part is that most of the world governments will be impacted more than our citizens. God knows that is bad enough. There is no quick fix. This can’t be fixed by financial institutions who created this with the assistance of the “Good old Boys” political system that allowed it to occur. Every financial institution involved should be the target of class action litigation. The Senators who fought for and supported the many irresponsible deregulatory measures should be shown on televison as the corruptable fools they are. That should be done prior to and throughout the next election process.
The lobbists should be held as corruptors and should be included in the class action suit to provide some marginal recompense to the investors who have been cheated by the collusive activities of these persons which resulted in unearned wealth at the expense of those investors who trusted them to perform honorably and ethically.
Posted by: 1 Old Guy | January 26, 2009, 3:16 pm 3:16 pm
It is amazing that there has been bailouts for Wall Street and banks with no oversight. Chase Manhattan has celebrated their bailout with tyranny against credit card holders past and present. Those few who are working are suffering garnishment with incredible interest payments added, an honest loan shark would break a leg. I recall the Bible calling usury a sin. Where is the religious right crying hell,fire and brimstone on the banks?
We need a solution that was proposed by Thomas Jefferson two centuries ago; there needs to be total debt forgiveness. Jefferson proposed debt forgiveness every 20 years; we need loan forgiveness for John Q. Public now.
We also need the Scotland plan for those suffering foreclosure. The federal government should take the property as a landlord and let the former home owner stay on as a renter until the former owner gets back on their feet and buys the property again at a lower cost reflecting the rent payments.
Posted by: JD Norvell | January 26, 2009, 4:09 pm 4:09 pm
No CEO’s recently went to jail.
They got to keep their jobs (if the company was still opened), their bonus, their perks,etc.
That’s white collar crime for the elite.
There’s no consequences for them – just rewards.
We’re the chumps who are supposed to just ‘take it’. And so we are.
We shouldn’t be fighting each other.
We need to turn our attention over towards these people who ran these firms into the ground and are now collecting big bucks from the bailouts.
What are they doing with the money?
Spending it on themselves – jets -
redecorated offices, etc.?
ABC: WHERE IS YOUR EXPOSE ON THIS?
Posted by: cc | January 26, 2009, 4:53 pm 4:53 pm
i wouldn’t just blame the American people for the entire crisis.
i think all the G8 nations as a whole have played their roles to create this mess.
yeah but the good thing from this crisis hopefully is that we learn to live within our means and not on leverage because leverage can really kill you.
I’m just lucky I’m at India. we’re hit over here but then it’s not too bad as our economy’s still booming.
America seems really bad right now, and we all know when America’s down we’re all down so to speak (because of what America owes the world – deficts anyone?)
Yeah as someone said..10 years should be just about right (and I’m being optimistic)
and we’ve all got the credit card crisis yet to hit us, that’d be something too!
Posted by: floyd martyres | January 26, 2009, 5:43 pm 5:43 pm
What ease is today looking for someone’s as guilt’s one about the cost-effective situation of the world?
Really, this case was produced 50 years ago when the world was using without to see or to thinking in the future of the world. Who could say 50 years ago that one day the computer will leave million people without work?
Well, the same case was with the Holy-Dollar. How comfortable and happy were doing business the world using the dollar without to seeing if this money word one day will leave its power because in other place of the world was creating a new money and slowly increasing its value and put it before the dollar and suddenly the computer was giving dates that confusing both sides. The dollar has lost definitively its value. Believe me for that you do not need to be an economist. Everyone in the profitable world is so guilty about this situation like the more miserable trader and nobody could change this situation without to think in the terrible situation that can be produced that we are now living. Nobody.
Looking a guilty person or country is so stupid like to say the Americas problems today are because Mr. Bush was president. He only increases the velocity of our problem.
Posted by: godi38 | January 26, 2009, 9:57 pm 9:57 pm
why is that we can speak about everything in the world, but have a small comment on 93 year old vetran who has served his country. This man froze to death from his eletric being turned off during the coldest days of the winter my heart was truely broken to hear of this tragedy my deepest sympathy to the family. As a young woman who struggles to keep my own utilties going and the way the economy is with the lay offs, were losing more buisnesses, there should be some kinda of law that protect the elderly and childern. Where is the government,the law makers, for the people… Hello America their our so many of us out here in the same situation we need someone to protect us…Thank you
Posted by: marlene | January 27, 2009, 12:05 pm 12:05 pm
The #1 Reason for this “Financial Mess” is the American POLITICIANS and their POLICIES that make AMERICA a SOCIALIST Mammary Gland the rest of the Globe SUCKLES from CONTINUOUSLY….
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