The Economic Crisis - Who's to Blame?


The Economic Crisis - Who's to Blame?

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Everyone agrees that we are going through the worst economic crisis in living memory. Stock markets have crashed 15-25% in a matter of days and there is panic all around. Who is responsible for all of this? Shouldn't someone be held accountable for the mess that we find ourselves in. People are losing jobs by the hour and things can only get worse, it seems. How does one explain this crisis? We touted capitalism all these years and now we have to bail out our inefficient and incompetent banks? How did it come to this?

Sure, the management of all of these banks and financial institutions are at fault - with their wanton greed and callous attitude towards the health of their balance sheets. But, what about the govt institutions that were supposed to know. Were they not supposed to know or did they choose to let this mess happen? Are they not supposed to regulate, to keep a watch? Who's to blame for this catastrophe - really?



user-icon Submitted by Shil1978 on Sat, 2008-10-11 05:52


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Rycharde Manne's picture

mea culpa

Submitted by Rycharde Manne on Sat, 2008-10-11 09:15.

The people to blame are the same people pretending to solve it. Maybe they are not pretending. Maybe they seriously screwed up. But that's OK, they can live with it.

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r_arun_03's picture

Financial regulators are to be blamed

Submitted by r_arun_03 on Sat, 2008-10-11 10:01.

Financial regulators are to be blamed for this mess.. I would not say this as a mess. These things happen in a cycle...
If suddenly financial regulator put some strict regulations, in that it will definitely slowdown the economy when compared with other countries who don't have very strict regulations..
it just happens ..

Publius's picture

"Were they not supposed to

Submitted by Publius on Sat, 2008-10-11 10:47.

"Were they not supposed to know or did they choose to let this mess happen?"

They didn't choose to let it happen. They caused it to happen.

"We touted capitalism all these years and now we have to bail out our inefficient and incompetent banks?"

This is not the fault of capitalism. Yeah, sure - we have "touted" capitalism for a long time. Unfortunately, the government has tried it's best to make sure were are only quasi-capitalist. Why are the banks "inefficient" and "incompetent"? Because the government allowed them to become that way. You can't force them to make bad loans, promise them that they will be saved if they fail, and then expect them to make good financial decisions. It's insanity.

Then, when these banks do fail and the market is on the verge of collapsing, we look to the government for help? How stupid has the American public become?

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