Blame somebody for the financial crisis!

Post Reply New Topic

Yes, it's time to point some fingers and spew some vitriol. With the amount of finger pointing going on last week (and the blame shifting done by, who was it, someone at JP Morgan I think), I ask, "why let the bigwigs have all the fun?"

The current politics is to blame: If they would let the banks go just bust, the crisis would be over by now and new banks could emerge. So they are "saving" the banks and therefore really causing a real for the whole economy; "toxic assets" owned by a bankrupt bank are no problem for the economy; "toxic assets" in double-digit percentage of the GDP in the books of the central bank or the government are problem for the whole economy. The current banks are not able to serve as the transmission for capital flow; so getting rip of those would do less harm and would open the market for new financial institution. The current policy (in the US and in Europe) is a risk for middle term and long liquidity of the state.

Sometime doing nothing is better than doing the wrong thing.

I'd say the biggest cause was the massive moral hazard from allowing home lenders to insulate themselves from the risk of the loans they made. I think you can argue about the specifics, but it all comes down to that central issue of a situation being created where it was possible to take the money while passing the risk on, it's not realistic to expect people to turn down a deal like that.

Your mom...

Sorry, had to say it...

I blame Ryan Seacrest.

This would not be the problem - anyone how lends money must be prepared that he will not get his money back. In some cases it is likely; in other cases not likely.

The problem is that this risk, which is also the basis of the profits of banks, by deserving the risk, adding interest and estimating this risk is now put on the shoulders of the public, by even risking on the long run severe difficulties for government finances.

I do not think that talking about morals helps in any way to understand economy.

I blame the messenger, so...You, yes, you.

big picture answer: the modern monetary system/SCAM itself (aka fractional reserve lending) - http://video.google.com/videoplay?docid ... 2583451279

smaller picture answer: what dussel said; repeating the political madness of japan & 'zombie banks', rewarding financial incompentancy.

Yes, I did it, but who wouldn't with all the easy money I was getting from China? I was visibly intoxicated, so I'm pretty sure it's the bartender's responsibility.

But seriously guys, $500,000 is not a lot of money, particularly if there is no bonus.

LOL!

The system of creating money by the central bank out of nothing is good - so long the Central Bank has only one objective: The stability of currency and is independent from the political process.

One really good thing of the ECB-System is that it is not subject to any government and not subject to any single law maker. Congress can always amend the Federal Reserve Act, Parliament in the UK can always alter the terms of Bank of England, France did so for nearly two centuries with the Banque de France, etc. Amending the terms of the ECB would need an international treaty of all 27 EU-member states, practically impossible.

---

I have the impression that the decision makers and their advisers do not look deeply enough into history. I personally think that the current crisis has more to to with bust of Banque Royal in under Louis XV than with the Great Depression of 1929-1934.

Last edited by Dussel on 10 Feb 2009, 10:43 pm, edited 1 time in total.

I think it was Awesomelyglorious. It's part of his plan to establish an anarchist system by bringing all current governments to bankruptcy.

Nah, I don't need to intervene to do what governments will do themselves.

as i contemplate all the past great cultures and societies on this planet they have 3 things in common 1, they were all controlled by religious organizations 2, they all rise to greatness 3, and they have all fallen. mabe its just our time? i think the word is entrapy.i believe if any thing is to blame its the colective christion conciusness. after all it is the most dominate religion on this planet.

the collective christian consciousness! [sic]

the ccc, i love that. we call it the church invisible, which is essentially like the hand of god

i would see it more as the hand of satan myself, but it's all prophesied to play out that way anyway.

Last edited by Postperson on 10 Feb 2009, 11:43 pm, edited 1 time in total.

I blame the manatees. They are the ones causing global warming to kill off the humans who scarred them with boat propellers and also so they can have a hot, moist waterworld to thrive in. They're evil I tell you! EVIL!! !