Monday, August 31, 2009

Who do we really blame for the Economic Mess?

Going back thru a few old issues of Time magazine I found an article on the 25 people to blame (Feb 23, 2009). This story lists 25 people in order that they believe are responsible for the meltdown. I mostly agree with the list but I find a few omissions that can't be overlooked as well as at least one scapegoat.

The list does not even mention Obama friend and one time VP possibility Jim Johnson who led Freddie Mac during the days the books were being cooked. The list includes Frank Raine's the Knuckle Head who was in charge of Fannie Mae. Both received huge bonuses by the way. How do you list the CEO of Fannie but not Freddie?

They also list Bernie Madoff. I guess it's easy to pick on the guy who will be spending the rest of his life in prison. I'm not sure his ponzi scam was large enough to bring down the American economy but what the heck, let's blame Bernie.

Another missing from the list is BARNEY FRANK. My buddy, MR. DAFFY DUCK himself. Mr. There is no problem at Fannie or Freddie. Mr. Frank was sitting as the Ranking Democrat on the Financial Services Committee in 2003 when Bush wanted more oversight of Fannie and Freddie. Frank spoke out about the lack of need for more oversight at that time. A year later Frank Raine's left in the middle of an accounting scandal, Yeah I guess it makes perfect sense not to include Barney in the list.

And how about Chris Dodd. The Senator and Chairman of the Banking Committee. The Senator who received one of the VIP "Friends of Angelo" loans from Country Wide. The same Dodd who received one of the highest proportions of contributions from Fannie and Freddie at the time. The very same Senator who had many questionable business deals and has a reputation for living off of his constituents money.

I can't say I agree with putting Alan Greenspan on the list. I know he has gotten a lot of bad press in relation to the whole scandal but I personally remember him warning that the Sub-Prime loans, if the market goes bad would effect the overall World Economy like we've never seen before. Just because he lowered rates which made it possible for Wall Street to manipulate the system, doesn't mean he made them do it. He didn't Call Angelo and say, "hey why don't you take that radical new loan idea those Sandlers made up and offer it to folks who won't be able to pay in 3 to 5 years. Then you can make an ass load of money, hahahaha".

I mean really,


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