US must accept blame for financial crisis: panel

[ProSense]

Source: AFP

WASHINGTON (AFP) – The United States as a nation must accept blame for causing the financial crisis that engulfed the global economy and cost millions of jobs, a US government-appointed panel reported Thursday.

After 18 months spent reviewing millions of pages of documents, interviewing more than 700 witnesses, and holding 19 days of public hearings, the Financial Crisis Inquiry Commission concluded bankers, lawmakers and regulators all contributed to the ethical and professional failings that plunged the world into financial panic.

But, it said, the American public, which over decades had saddled itself with unserviceable debt, was also at fault.

"As a nation, we must also accept responsibility," the report read. "Collectively, but certainly not unanimously, we acquiesced to or embraced a system, a set of policies and actions, that gave rise to our predicament."



Read more: http://news.yahoo.com/s/afp/20110127/pl_afp/usfinancebankingpoliticsprobe_20110127151402

---

Via Ezra Klein

The Financial Crisis Inquiry Commission has released its final report, which looks to "determine what happened and how it happened so that we could understand why it happened." The full document -- including the dissents from four of the Republicans on the panel -- can be downloaded here. The transcripts of the hearings the committee conducted can be found here. If the thousands of pages in those two links seem like a bit much to you, the FCIC's conclusions are here (pdf). This, I think, is the key takeaway:

<...>

About the Commission

In the wake of the most significant financial crisis since the Great Depression, the President signed into law on May 20, 2009, the Fraud Enforcement and Recovery Act of 2009, creating the Financial Crisis Inquiry Commission. The Commission was established to "examine the causes, domestic and global, of the current financial and economic crisis in the United States."

The 10 members of the bi-partisan Commission, prominent private citizens with significant experience in banking, market regulation, taxation, finance, economics, housing, and consumer protection, were appointed by Congress on July 15, 2009. The Chair, Phil Angelides, and Vice Chair, Bill Thomas, were selected jointly by the House and Senate Majority and Minority Leadership.

<...>

In its work, the Commission is authorized to hold hearings; issue subpoenas either for witness testimony or documents; and refer to the Attorney General or the appropriate state Attorney General any person who may have violated U.S. law in relation to the financial crisis.

On November 17, 2010 the Commission resolved, by majority vote, to deliver its report in January 2011, rather than on December 15, 2010. The Commission will conclude its operations by February 13, 2011, as prescribed.

[snappyturtle]

1. I will never blame the American people-at-large for this

global economic mess. I well remember the prodding, coercing, twisting arms of the financial industry aimed at us to go after that equity loan, to buy that new house, etc. and that not to act was missing the opportunity of a lifetime. TPTB in financial segments KNEW what they were doing, to not just our economy, but to the world's, and that was looting. imho

[RantinRavin]

5. I will

Nobody forced them to do anything. It is very easy to say "NO!"

[snappyturtle]

11. When people go to 'professional' financial advisors and they are told certain

moves would enhance their future and increase their personal wealth, what do you suppose these people did?
Think Bernie Madoff for one culprit.

[bongbong]

Nope!

It's not that easy to say no when an authority figure tells you to go ahead and lie on the application because everybody does it.

Just like how millions of Americans vote against their own interest, and vote to end America, whenever they vote for repigs.

[No Elephants]

19. Who knew better, borrowers or lenders? Why did lenders start giving "no verification" loans?

Why did banks have appraisers overvalue real estate? If the homes had not been so overvalued, default would not have been a problem.

Why did banks pay originators MORE for bringing them risky loans than for sound ones?

Why would a borrower refuse a loan experts were assuring him or her would be no problem for him or her to manage?

The crisis was the fault of the insatiable mortgage-backed securities industry and lenders who would do anything to keep feeding that beast. And AIG, which made a bundle insuring the whole mess, making it seem like a safe investment, even for pension funds.

And the appraisers, lawyers, accountants, investment bankers, rating agencies who knew things were wrong but did not speak up bc they did not want to lose the business. ("If we don't do it, someone else will," was their rationalization.)

Blaming borrowers is a RW meme. Read some books on this.

[No Elephants]

18. +1. You could not be more right.

[pampango]

2. I think the rest of the world already knows who caused this. n/t

[No Elephants]

20. Some do. Others only think they do.

The ones who yell, "Liar loans," are either sincere, but misguided, members of the second group or dishonest propagandist members of the first group.

[Bandit]

3. Well Duhhh

Of course the American people are responsible, they elected Republicans to rule over America....What really did they expect? Do they never ever read any History?

[sharesunited]

4. And we just doubled down on that same mistake!

[Le Taz Hot]

21. A Democratic President signed

Glass-Stegall. NAFTA was signed in by the same Democratic president. Focusing blame on one political party without recognizing the culpability of the other is nothing more than partisanship which is the way the Ruling Elite designed it. We need to be realistic in our assessments.

[No Elephants]

23. +1 I should have read your reply before I posted. However, I will leave

my reply bc many argue "In fairness, repeal of GS had a veto proof majority."

Well, yes, it did, bc Repubicons wanted it AND the head of our party demanded it on his desk. (Besides, what in hell is wrong with vetoing something you don't believe in and MAKING people override, if they so choose? Would a majority of Dems really have overridden Bubba's veto? I doubt it.)

[No Elephants]

22. Clinton said he wanted repeal of Glass Steagall on his desk ASAP. And he signed it.

[Enthusiast]

6. Home mortgage borrowers

are not to blame, as a group.

The champions of deregulation are mostly to blame and the Obama Administration is full of them.

[No Elephants]

24. So was Clinton's. indeed, if you look fast, it seems as if only the guy behind the desk changed.

Okay, George Steph is on GMA now and we have a few more Chicagoan advisors.

[DesertDiamond]

7. All the debt I've ever had has been from the cost of living being higher than my income.

[Enrique]

8. too bad we can't prosecute 'the United States as a nation'

oh well...

[jwirr]

9. Globalization was just a scene to further slavery and to keep the

poor where they are at.

[Courtesy Flush]

10. But, but... it's the free market. How can this be? nt

[EC]

12. What the average American public did was try to keep up

with prices, through credit (equity in their homes). Not on whims but because INDUSTRY refused to increase wages or hire on more employees. This wasn't the publics fault - they were just trying to survive, this is the fault of greedy stock holders and CEO's.

[florida08]

13. bullshit

I will never accept responsibility for what those crooks did. I didn't borrow money for wars or tax cuts. The subprime was miniscule compared to what the swaps were. If it were just the liar loans it could have been solved by just covering for those. Lay it solely on the laps of the deregulators and investment banks/hedge funds. This was an economic coup d'état. They made bets on the FRAUDULENT products THEY issued to FAIL. Gee Louise

" width="470" height="562">

[No Elephants]

25. +!

[Tuvok Obama]

14. I suppose I must accept my own share of the blame for this mess

I was selfish and greedy. I refused to live outdoors and go hungry, and this exaggerated self-interest necessitated bill-paying.

I sunk so low that I found myself working at jobs so I could pay those bills, thus perpetuating my greedy lifestyle.

Please forgive me, global economy! :cry:

[Veilex]

15. ...

Yeah cause ya know, it couldn't POSSIBLY be the fault of global forces dipping deeper into pockets such as the the world bank along with other global banks... nor could it POSSIBLY have anything to do with the gouging OPEC encouraged on oil prices.
Why that simply reeks of causality rules and simply couldn't be true. I mean realy... how could it be that the rising cost of fuel has increased the cost of everything across the board from food stuffs to electronics and of course transportation thereby tipping the initial domino in a long line of dominoes. It couldn't possibly be true that the banks saw what was happening and decided to capitalize on what they new would be a global trend because there is a historical reference to use to guide their actions. Banks are upstanding and honest! They wouldn't encourage and sometimes bully people into taking loans and mortgages that the bank knows for fact would be extremely risky and almost guaranteed to fall into default and foreclosure. Why in the world would a bank get a ton of cash essentially scot free from an unsuspecting consumer then turn around and sell the house and make even more? Why that sounds simply corrupt and underhanded. This article is absolutely right... it doesn't matter that the American public is often too busy with their own lives to keep informed of all the changes that happen on a daily basis in rules, regulations and legislation.... the uninformed American people are OBVIOUSLY to blame and simply MUST accept responsibility for what has happened.

Right.... pardon me but this sounds like a typical republican line. "You people screwed up...oh but the banks and oil industry...oh and the medical, pharmaceutical and insurance industries deserve no blame."
Its a steaming load of you-know-what.

I will NOT accept blame...neither should you.

[ProSense]

16. Crisis Commission Says Derivatives Were ‘At The Center Of The Storm,’ As GOP Tries To Slow Reform

Think Progess: Crisis Commission Says Derivatives Were ‘At The Center Of The Storm,’ As GOP Tries To Slow Reform

[Smashcut]

17. Oh bullshit.

The "American public" as a whole is not responsible for this.

Follow the money. Much of it is still walking free, in and out of the White House every day.

[No Elephants]

26. So glad the majority on this thread get it. The report is a lying insult to Americans.

Then again, it's hard to think of the findings of any bipartisan D.C. appointed commission that are not a lying insult to Americans.