Thursday, March 13, 2014

The Bankers' Big Lie

The bankers want us to believe that the American financial consumers were responsible for the Great Recession.  The evidence shows that bankers were the real villians is this.  They inflated valuations and issued bad mortgages by changing their own rules.  And nothing has been done to keep them from doing it again.

Sorry, everybody was not to blame. “We” didn’t all do it. “Main Street” didn’t succumb to a new tulip mania, and cheap credit didn’t expose anything but the corruption and immorality of a financial industry that systematically put huge numbers of even credit-worthy borrowers into defective products. Cultural theorizing—especially the evidence-free kind—should be seen for what it is: an exercise in complacency. It’s easy. And it’s what you lean on when you don’t want to take on structural problems, the kind you actually have to do something about.

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