Community | January 26, 2011 | 27 comments

Financial Crisis Was Avoidable, Inquiry Concludes

source: http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html?src=busln

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Vierotchka

http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html?src...

The commission’s report finds fault with two Fed chairmen: Alan Greenspan, right, a skeptic of regulation who led the central bank as the housing bubble expanded, and his successor, Ben S. Bernanke, who did not foresee the crisis but then played a crucial role in the response to it.

The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a federal inquiry.

The commission that investigated the crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors and risky bets on securities backed by the loans.

“The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done,” the panel wrote in the report’s conclusions, which were read by The New York Times. “If we accept this notion, it will happen again.”

(click on the link for the full article)
  1. groups:
    Community,   News and Politics,   Monetary Matters
  2. tags:
    Economy,  US,  Finance,  Financial Crisis,  1 more
  3. recommended by:
    Vierotchka
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27 comments // Financial Crisis Was Avoidable, Inquiry Concludes

  • TheEmpireGuy
  • TheEmpireGuy
  • toastyguy11
  • toyotabedzrock
    • +2
      toyotabedzrock  
    • Image

    • So how much did we pay these people to tell us what we already knew?

      Just throw the bankers into the street, near hungry homeless people, problem solved.

    • 2 years ago
  • fun_size
    • +3
      fun_size  

    • Of course the recession was "totally unavoidable". How can they steal our money without there being some kind of economic collapse?

    • 2 years ago
  • coolplanet
    • 0
      coolplanet  
    • fun_size:

      Reagan did exactly the same thing.
      Deregulation is voodoo economics.
      Trust the billionaires to regulate themselves.
      On Black Friday, October 1987 (seven years into Reagan's term) the stock market plunged worse than in 1929 because the banks went belly up. They did it in 1929, 1987 and 2008.
      This is how republicans steal our money.
      Will we ever learn?

    • 2 years ago
  • samthesixth
  • ThatCrazyLibertarian
  • PressCore
    • +1
      PressCore  
    • ThatCrazyLibertarian:

      Uhhhmmm, lemme guess...A faithful depiction of the Mutt & Jeff comic strip ?
      Hey, we all know by now that evil clowns are relegated to late nite B movies.
      BTW, thanks for the Basil Rathbone flashback. He and Peter Cushing made
      the best depiction of the Sir Arthur Conan Doyle's alter ego Sherlock Holmes
      saga, imho.

    • 2 years ago
  • Sparky2U
    • +3
      Sparky2U  

    • Simple solution ....dismantle and audit the FED. (2) Tell China to piss off as for their attempts to place their Banks on American Soil. Bush was and Obama is a failure as a president. Follow the money trails, they lead to both political parties.

    • 2 years ago
  • mitekillem
  • Mark701
  • Dagum
    • +1
      Dagum  

    • Can you sue them for malfeasance in their governmental capacity ? Or is there a tort of economic malpractice?

    • 2 years ago
  • kennymotown
    • +9
      kennymotown  

    • One word that truly defines the whole mess, GREED! You sure haven't seen many of the rich take it in the shorts have you? And the fact that it is aloud to happen is because many of the rich are fucking CROOKS with Crooked Representatives in Government posts and elected positions. As we have learned so clearly, and seen who has made a financial recovery it isn't the the lower classes that was Greedy. Financial schemes that were allowed to happen, were designed to take money from the lower classes and redistribute it to the upper 5% of this country! I'll leave this post with one clear question, why aren't there at the very least 1,000 money changers in JAIL?

    • 2 years ago
  • lenhart
    • +6
      lenhart  
    • kennymotown:

      when you're right, you're right and you're right, kenny. When I started following the flow of wealth upward, the top 10 percent already owned more than the rest of us combined. Now --the 'ruling' ONE PERCENT own and/or control more wealth than is owned by the rest of us COMBINED. Enron was NOT an aberration. The money interests are now in a position to control our daily lives in ways that we still have not fully understood. They OWN the media; they OWN the Military/Industrial Coplex; the OWN and CONTROL K-Street and, hency, the government of the United States. It is OWNED! Wars are fought entirely for the benefit of of this ruling elite. Bobby Darin's 'Simple Song of Freedom' nailed it: "....we the people here don't want a war!" Anyone NOT a member of the elite are cannon fodder.

    • 2 years ago
  • kennymotown
  • lenhart
  • PressCore
    • +1
      PressCore  
    • kennymotown:

      Because if Mutt & Jeff in that cartoon immage above told us " let them
      eat cake ", people would revolt, and storm the bastile. Decentralizing
      one bastile into many bastiles wouldn't stem the tide. Money talks and
      bullshit walks, amigo. We should not only audit the Fed, repeal the
      Federal Reserve Act, then deport Mutt & Jeff to Guantanamo. We
      should also do as H.R.Rep.Dr.Paul suggested. We should have the
      next President sign an executive order to audit 1. the Fort Knox Gold
      Depository. 2. the New York City Federal Reserve bank Gold Depository
      3. the San Francisco Assay Office Gold Depository. The History channel
      reports that there should be at least 147 Million troy ounces of Gold
      stored in Fort Knox alone ( $100 Billion of REAL Constitutional money )
      The last audit was done 40 years ago !!! Hell, we should have an army
      of GPAA prospectors with metal detectors combing Cheyenne Mountain
      in Colorado to scope out where those Banksters have stashed the rest of
      what they consider to be their loot. It sure isn't in Nome, Alaska, pard.

    • 2 years ago
  • kennymotown
  • kennymotown
  • GENERALNATTY
  • kennymotown
  • alexandrek
  • lenhart
    • +5
      lenhart  
    • alexandrek:

      I have had it with 'trolls'. I de-friend and block them on YouTube. I was taught as a child NOT to waste my time talking to idiots. I think Current should allow authors to BLOCK spammers and trolls. That they have no seen fit to do that is one reason I no longer post articles to Current. I don't have time for evil idiots.

    • 2 years ago
  • TheAmericanPatriot
  • Vierotchka
  • artemis6
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