Law Students

Enough Blame To Go Around

By Pete

Charlsie sent this Op-Ed today and I agree with it 100%:

I’ll say this upfront: I hope the titans of finance who expect us little people to save them are ashamed of themselves. But at the same time, in painting Main Street solely as a victim of a rapacious Wall Street, we are being hypocritical.

We are all to blame.

Step back. The securities that are poisoning the financial system are made up of mortgages and home equity lines that are going sour. . . . “Innovation” on Wall Street meant that the institution that made the loans could sell them off, and bankers could carve up those loans into new instruments, which they in turn sold to investors around the globe, with the result being that no one felt responsible for ensuring that the person who got the mortgage or the credit card or the home equity loan could actually pay for it.

But who made the decision to take on that mortgage she couldn?t really afford? Who lied about her income or assets in order to qualify for a mortgage? Who used the proceeds of a home equity line to pay for an elaborate vacation? Who used credit cards to live a lifestyle that was well beyond her means? Well, you and I did. (Or at least, our neighbors did.)

Amen.

Full post as published by PeteHoliday.com on October 03, 2008 (boomark / email).