In recent weeks there has been a growing public backlash toward various sectors of the financial system for the current economic crisis. From Jon Stewart’s scathing critique of Jim Cramer to the AIG bonus fiasco, the blame seems to be getting sent in one direction. As Stephen Colbert jokingly suggested on his show this week, we’re pretty close to having angry mobs with torches and pitchforks protest outside of these financial institutions. While there’s no question that these parties bear a great deal of responsibility for this mess, it’s neither constructive nor accurate to put all the blame on them.
The truth is that there are many parties to blame for the situation we’re in right now. What many people seem to forget is the fact that these sub-prime mortgages that caused this crisis were perfectly legal when they were being given out. Washington created a regulatory environment that enabled banks to give out these toxic mortgages while homeowners agreed to the terms knowing full well that they wouldn’t be able to pay them back. Each part of this system allowed the other parts to function and operate profitably despite the inherent risks it posed to the economy as a whole.
The lesson learned from this crisis is not only that all parties involved need to be more financially responsible but also personally accountable. This is the message that President Obama and the rest of our political leaders should be communicating to the public. As difficult as it may be for them to make us face this reality, it’s something that must be done if we want to get out of this recession and avoid others like it in the future.
On a lighter note, March Madness is here!
By John Klein
