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07:30 June 30th, 2009

Who do you blame for the credit crisis?

Posted by: Jane Merriman
Tags: Uncategorized, , , , , , ,

Greedy bankers are routinely blamed for the credit crisis but one British-based poll of — well, financiers — spreads the blame more widely.

Gary Jenkins, head of fixed income research at Evolution Securities, wanted a more specific scapegoat and ran a poll of about 200 mostly fund managers and investors asking them to pick their credit crisis culprit. Former U.S. Federal Reserve Chairman Alan Greenspan was the clear winner, picking up 35
percent of the votes. He has been widely criticised over the past year for low interest rate policies that helped fuel the credit boom.

Former U.S. president Bill Clinton also figured quite prominently with about 10 percent of  votes, and British prime minister Gordon Brown got quite a few.

Some bankers were singled out, including Fred Goodwin, former chief executive of Royal Bank of Scotland and Richard Fuld, the head of collapsed Lehman Brothers.

In a related article in Euroweek, Jenkins also had a unique culprit — Bill Gates of Microsoft. None of the maths behind structured credit could be done without spreadsheets like Excel, Jenkins reckons.

So who do you think is to blame?

(Reuters photo: Kevin Lamarque)

23 comments so far

[...] MacroScope » Blog Archive » Who do you blame for the credit crisis … [...]

- Posted by Learn From History - The Anatomy Of An Economic Meltdown | 123 FOREX

I have a hard time blaming lenders because of their greed. I certainly don’t feel sorry for them. They took the risk and now they have to pay for their greed. Massive losses on bad loans. Got what they deserved. Borrowers, though? How can you borrow more than you can afford. Spend it. Then blame someone for lending you too much?

- Posted by Mack Michaels

Our economy prior to 2008 was an inflated one, built on leveraged trade, aggravated by greed and plagued by poor leadership. When it worked, we took it for granted. When it failed, as designed to, we tried to find scapegoats. The crisis is one of cumulation. We just need leaders of good vision for the long term in the Fed and Treasury.

- Posted by Miner

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