Sumorani, if it helps , I come from a family of Bankers and my own profession revolves greatly around Bankers .... hence I do know what I am talking about...
the bubble was created and it was fueled by greed of some members of society that has now brought adverse affects on the rest of the society..
how can you blame the taxpayers ? if a product in the market has gone bad , you cant blame the consumers for buying it .. the company that produced that product is held liable...
The reason the bankers and the large investor firms are responsible is because they were behind the creation of all these investment tools/products used in the Forex that led to the crisis...
Dont know what Americans are saying , but we here in Britain arent going to forgive them easy.. coz the damage to the economy is far more then what the media is portraying .. and the goverments are to be blamed for not putting a leash on these corporates and banking entities ...
Just a good few months before the crisis there were many statements from risk assessment professionals and economists who were whistle blowers and informed authorities of the excessive risk the economy was falling in ... but they were cleanly ignored ...
and today ... we are seeing the affects of a bubble economy ! and to further save the tax payers money we are going to do every possible thing to stop them bankers getting away with bonuses...
I think President Obaama is doing the right thing with AIG and that should be something the British goverment should also be doing in England.
if that's true then it's quite shocking that u dont agree with me saying , 'firstly, this recession wasnt only caused by bankers and big corporations and banks. it was also caused by the taxpayers that decided to purchase houses they very well knew they couldnt afford with adjustable rate mortgages. It was also caused by the rating agencies that couldnt properly rate securities that were too complicated. and also by govtmental agencies that provided minimal or no oversight at all. to place all the blame on bankers and corporate execs is just ridiculous.'
please read above on my reply to DB to see how the bubble was created, because it was definitely not created by the greed of bankers but instead by the greed of taxpayers.
what product in the market?? the only product taxpayers in the market bought were houses at ARMs. and once the interest rates went up, they couldnt afford the mortgage payments anymore.
bankers and senior execs are to be blamed. im not saying they are immune! they are definitely to be blamed. they are the ones who made the cdo's and mortgage backed securities which they then sold to investors. once the interest rates began increasing, taxpayers were unable to pay their mortgages, and the CDOs became worthless because they didnt yield anything. then the investors that boguht the securities were unabel to sell it because previously these securities had a liquid market and once people realized what was going on, no one was buying these securities anymore.
how can u possibly say it is only the bankers fault specially if u really do work in the finance sector or close to it?? the securities were rated as AAA by S&P and Aaa by moodys. they rated them when they didnt even understand them! so yes the credit rating agencies are to blame.
the government provided no oversight. i dont know what they tell u in england but in america, its a known fact that these securities were left in the market without any oversight. if they hadnt, obviously we wouldnt be in this mess. so yes, the regulating agencies are also to blame alone with the investors, taxpayers, and banks (not only invesment banks but also commercial banks).
Good on ya ladies - I read every post and sumorani your perspective is quite different than most people I’ve spoken to, so good read!