Accountability....Who Is Accountable ?

Discussion in 'Economics' started by libertad, Dec 22, 2008.

  1. Let's say one formed a list of who should be accountable for today's economic ills ?

    Bush Administration.....

    Bush promoted favorable "easier" housing policies

    Bush spent heavily on non-infrastructure....

    Clinton promoted "easier" housing policies....
    The $500, 000 tax free real estate rollover made the returns on levered housing superior to other investments...

    Fuld, Blankfein, Mack, other IB heads.....
    Facilitated careless excessive leverage for both housing and commodities....

    Politicians ....Barney...etc....initiated and maintained policy supporting bad economics....namely "easy money" housing etc...

    Rating agencies....

    Lost their objectivity....Were paid to create AAA ratings which allowed for the placement of CCC paper that supported "easy money" housing....

    And are still in business.....

    The list goes on.....
    ...........................................................................................

    Here is the problem.....

    The Fed is bailing out and maintaining the very ones that were causal in today's economic blight.....

    It seems as if no one is being held accountable....

    Which must mean the legal system has no means or desire to hold persons accountable for the huge financial damages ? Particularly to those who played by the rules, saved money, and provided the fruit of their work....such that others could have loans....albeit for easy money ?

    Thus the word justice comes to mind ? What justice ?

    Another issue that comes to mind is remedy....
    If one does not banish the problem creators....then how does the problem go away?

    There almosts seems as though there is a grand scheme against those who played by the rules and saved their money.....

    At this very moment....they have no reward for saving....the US government mandated "no interest".....

    Time for CHANGE............

    CHANGE that actually creates justice by and for those that provide the wealth whereby the economy can move forward .....not backwards.....
     
  2. Collectively we are all responsible. In the end our elected officials dropped the ball, because our standards are low and we let them. (Let's face it, Democracy is terrible at these types of things.)

    This is the fix I see:

    Currently the Fed is tasked with obtaining full employment and stable prices. Within its inflation mandate, it must be specifically responsible for addressing asset bubbles - pulling the punch bowl away just as the party gets going. The Fed should have tightened during build-up of Nasdaq bubble, and more recent housing bubble. They didn't because Greenspan and Bernanke correctly said "It's not my job."
     
  3. Perhaps another appropriate response would be to focus on both efficiency and resiliency....with regards to globalization....

    In particular...the US should adapt to consider its own domestic money a part of its resiliency.....It should have legal limits regarding borrowed money....etc...

    http://londonbanker.blogspot.com/
     
  4. How about the individual - how about self-responsibility??

    I know probably a stretch - but...

    I don't recall one story of a bank forcing an individual to take a particularly risky loan. Not a single story of a car loan being forced on anyone.

    How about the individual thought that I can always walk away if it doesn't work or at least I can file bankruptcy?

    How about the individuals need for immediate self indulgence?

    How about the mindset of the average American changing from "what can I do for my country" to Hillary's "what can your country do for you?" How about the idea that the government is a money machine that will give us what we want if we put the right people in charge?

    How about we just start this with the idea the the individual is perhaps responsible??

    But no, not with all the phyco-bable about others being responsible for who I am and how I turned out in life - can't be my fault.
     
  5. NObamanomics...

    Much of our present ills stems from our acceptance of "credit card" replacing "lay away"...
     
  6. There are many good individuals who are desperately trapped in the system. They won't bite the hand that feeds them. State workers, teachers unions, those depending on some aid, no one wants to tip over the apple cart.
     
  7. exactly...Letting people who can't afford big toys, do so. Leasing, credit cards etc etc...

    back in the day only a drug dealer or a doctor could afford a porsche. :D now anyone who can pony up the lease can drive away in one...even if they live in a trailer...peace