Who do you blame for the credit crisis?

June 30, 2009

Bankers, politicians and regulators have taken their share of the blame for the credit crisis.

Gary Jenkins, Head of Fixed Income Research at Evolution Securities, polled about 200 investors for a more specific view on who was at fault.

Alan Greenspan, former head of the U.S. Federal Reserve, was the most popular choice, with more than a third of the votes. Other more unusual picks included the BBC’s business correspondent Robert Peston and property TV show host Sarah Beeny.

If you could pick somone to blame who would it be?

10 comments

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People

Who wanted more?
Who got more than they could pay?
Who pushed the house prices up?

well that’s my opinion, quite simply.

You can regulate all you want but the economic maths was sound (well if you believed nothing ever goes down, not that property has dropped very much still 10-15 times most peoples salaries for a decent property)

Posted by shintekk | Report as abusive

#1.Politicians who repealed the Glass/Stegall Act….#2. Mr. Bubbles Greenspan who catered to the politicians both Republicans and democrat regimes…..#3. the banking/wallstreet gang…#4 the gullible populous……..Capitalism is not what you expect but what you deserve…….and now we are in the deserve stage………what a big mess!!!

Posted by Mr. Anderson | Report as abusive

Placing the blame on the people, politicians or bankers is only part of the equation. The root problem is the Federal Reserve causing a huge distortion in the markets, that set the economy on an unsustainable paths. The Fed by enacting unsustainable policies, create a fed induced “mania”(bubble) that always end badly. F.A. Hayek won the Nobel Prize for proving that central banks create these “artificial” booms.

Posted by Al | Report as abusive

Governments. They have taxed too much and spend even more of our money. Utterly incompetently. At the same time they have encourgaged profligacy on the part of disadvantaged people who should not have been in debt at all in the first place, in order to be able to crow about how we’ve never had it so good.

People know how to spend their money better than governments.

Posted by Matthew | Report as abusive

Governments of all flavors utilize “systems” to conduct commerce and control citizens. The power of currency in this endeavor can not be understated. Trouble begins to produce misery when those with authority to regulate (ie: manipulate) craft flawed policy based on greed and power.

While I am tempted to single out Mr Greenspan as the ‘culprit in chief’ I’m reminded of the politicians who provided the legal framework for the dastardly dirivitivs.
Unless the Fed truly has the power to dictate to our elected representatives, the blame must be shared.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Mr Hayek is worthy of study.
His Meet the Press 1975 posted HERE: http://mises.org/
The full audio link may be accessed HERE: http://mises.org/multimedia/mp3/intervie ws%20Hayek_MeetThePress_06-22-1975.mp3
The Road to Serfdom HERE: http://jim.com/hayek.htm

The Media!!! Sure, things get a little tough but when the Media start reporting on it they like to sensationalise & exagerate things, which panics people. So everyone stops spending because they are worried of loosing their jobs etc. No money through the community & we get a crisis!

Posted by Adrian | Report as abusive

Clinton and Blair. Their philisophy was the same – give people somthing to be happy about and they’ll keep voting for you. Clinton showed that it worked and Blair copied him.

Blaming the bankers won’t work. They were told to “be inclusive in their lending” and Fannie and Freddie took it to heart. So did everyone else.

And it worked. For Clinton and Blair. Good guys!! It’s just a pity that the rest of the world has to pay the bill.

Posted by Peter | Report as abusive

We need a legite money system like gold and silver
Why can banks pay us maybe 2 cents on the doller and
lend something like $64.00 for every dollor on depoistand we pay 5-6% do the math.System fails
why?

Posted by William | Report as abusive

Bubbles are caused by hype and greed… and they are burst by fear. Economic fact.

Short-sighted people borrowed money they couldn’t afford to pay back to buy goods they didn’t need; greedy bankers lent it out without thinking about said inability to pay back and now, with fingers burned, they refuse to lend even to those who can afford the interest payments; the media use hyperbole and fear to turn a liquidity problem into a crisis and now, aparantly, the sky is falling in and we’re all going to die…

to be honest, i’ve never been better off… my mortgage has halved, i don’t have debts and i have bags of equity in my house (and no, i don’t want to sell it, i want to live in it… because that’s what it’s for).

a credit crunch (however caused) is someone’s way of stopping people buying stuff they don’t need…

Posted by mark | Report as abusive

Primarily government has a duty to be responsible in its economic management. However there is a very strong “Get Rich Quick” and “Keep Up With The Jones’s” mentality within the UK which was very difficult to stop. People think that they are “entitled” to things rather than earning them. This can be seen amongst the young, benefit claimants and amongst ordinary British workers. Companies’ incessant focus upon short termism means that people feel that they have to earn as much as possible in the event that they might not have a job in five years time. Executive greed knows no bounds and government cannot find a way to create a semblance of integrity into the fibre of their being!!

Perhaps Executives should be forced to offer unpaid ten days community service as a form of “Community Tax” so that they see the other side of life and the consequences of their decisions. Something has to be found to get them into the real world.

Posted by David Cullen | Report as abusive