Dick Fuld sends email from spiderhole/ Who is to blame for this mess?

[Occams Realtor]

http://postcards.blogs.fortune.cnn.com/2008/09/17/lehman-ceo-dick-fuld-resurfaces/

There are a lot of people at whom we can point fingers and say, “what were you thinking?” Dick Fuld is one of them with his 15 years of driving Lehman into the ground. So, as long as we are on the subject, who do you think is most responsible for this mess we are seeing unfold with our economy? Singular names or long lists are welcome.

Please don’t make this political; there are plenty of people on both sides of the aisle. For instance, Greenspan’s influence throughout the last eight years of GOP rule and the Democratic led congress welcoming easy financing for those who had no business owning homes.

[Eugene]

and the Democratic led congress welcoming easy financing for those who had no business owning homes.

Bad example. Democrats didn’t constitute the majority in Congress until winter of ’06/’07. By that time it was too late to change anything.

Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.

[Eugene]

and the Democratic led congress welcoming easy financing for those who had no business owning homes.

Bad example. Democrats didn’t constitute the majority in Congress until winter of ’06/’07. By that time it was too late to change anything.

Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.

[Eugene]

and the Democratic led congress welcoming easy financing for those who had no business owning homes.

Bad example. Democrats didn’t constitute the majority in Congress until winter of ’06/’07. By that time it was too late to change anything.

Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.

[Eugene]

and the Democratic led congress welcoming easy financing for those who had no business owning homes.

Bad example. Democrats didn’t constitute the majority in Congress until winter of ’06/’07. By that time it was too late to change anything.

Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.

[Eugene]

and the Democratic led congress welcoming easy financing for those who had no business owning homes.

Bad example. Democrats didn’t constitute the majority in Congress until winter of ’06/’07. By that time it was too late to change anything.

Much of responsibility is upon free-market/deregulation crowd – Greenspan, Cheney, Gramm.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[TheBreeze]

Bush started talking about The Great Ownership Society back in 2004 — about the time the housing bubble really started gathering steam. Regulation from the Fed and the Treasury could have prevented this. So yeah, I think the Bush administration played a huge role in this housing bubble.

[CA renter]

IMO, many parties are complicit, but the main villain is Greenspan.

Over the years, he encouraged extreme risk-taking by bailing everyone out after each crash or negative financial event.

What we see today — the taxpayers’ on the hook for the risk that enabled Wall Street to have record profits — is a direct result of Greenspan’s policies.

Additionally, Greenspan sought to fight deflation at every turn, which kept the market from experiencing the necessary cleansing that keeps growth in check and minimizes misallocation of resources and gross financial distortions (bubbles).

He could have lowered rates (though did not need to) back in 2001-2003 but added a cautionary note with regard to bubble excesses. He could have honestly noted the parabolic move in the credit markets and warned everyone about the potential for a housing bubble. He could also have mentioned that it was STUPID for people to use adjustable-rate mortgages when rates were at multi-decade lows. He could have encouraged regulations that would have prevented the most egregious types of mortgages from ever coming to market.

He is the captain of this sinking ship, but saw what was happening so he “retired” and left his $h!t for someone else (Bernanke) to clean up.

I have a notion he is NOT stupid and this did NOT happen by accident. Lots of money was made by people who are long gone and sitting on an island or yacht right now.

[CA renter]

IMO, many parties are complicit, but the main villain is Greenspan.

Over the years, he encouraged extreme risk-taking by bailing everyone out after each crash or negative financial event.

What we see today — the taxpayers’ on the hook for the risk that enabled Wall Street to have record profits — is a direct result of Greenspan’s policies.

Additionally, Greenspan sought to fight deflation at every turn, which kept the market from experiencing the necessary cleansing that keeps growth in check and minimizes misallocation of resources and gross financial distortions (bubbles).

He could have lowered rates (though did not need to) back in 2001-2003 but added a cautionary note with regard to bubble excesses. He could have honestly noted the parabolic move in the credit markets and warned everyone about the potential for a housing bubble. He could also have mentioned that it was STUPID for people to use adjustable-rate mortgages when rates were at multi-decade lows. He could have encouraged regulations that would have prevented the most egregious types of mortgages from ever coming to market.

He is the captain of this sinking ship, but saw what was happening so he “retired” and left his $h!t for someone else (Bernanke) to clean up.

I have a notion he is NOT stupid and this did NOT happen by accident. Lots of money was made by people who are long gone and sitting on an island or yacht right now.

[CA renter]

IMO, many parties are complicit, but the main villain is Greenspan.

Over the years, he encouraged extreme risk-taking by bailing everyone out after each crash or negative financial event.

What we see today — the taxpayers’ on the hook for the risk that enabled Wall Street to have record profits — is a direct result of Greenspan’s policies.

Additionally, Greenspan sought to fight deflation at every turn, which kept the market from experiencing the necessary cleansing that keeps growth in check and minimizes misallocation of resources and gross financial distortions (bubbles).

He could have lowered rates (though did not need to) back in 2001-2003 but added a cautionary note with regard to bubble excesses. He could have honestly noted the parabolic move in the credit markets and warned everyone about the potential for a housing bubble. He could also have mentioned that it was STUPID for people to use adjustable-rate mortgages when rates were at multi-decade lows. He could have encouraged regulations that would have prevented the most egregious types of mortgages from ever coming to market.

He is the captain of this sinking ship, but saw what was happening so he “retired” and left his $h!t for someone else (Bernanke) to clean up.

I have a notion he is NOT stupid and this did NOT happen by accident. Lots of money was made by people who are long gone and sitting on an island or yacht right now.

[CA renter]

IMO, many parties are complicit, but the main villain is Greenspan.

Over the years, he encouraged extreme risk-taking by bailing everyone out after each crash or negative financial event.

What we see today — the taxpayers’ on the hook for the risk that enabled Wall Street to have record profits — is a direct result of Greenspan’s policies.

Additionally, Greenspan sought to fight deflation at every turn, which kept the market from experiencing the necessary cleansing that keeps growth in check and minimizes misallocation of resources and gross financial distortions (bubbles).

He could have lowered rates (though did not need to) back in 2001-2003 but added a cautionary note with regard to bubble excesses. He could have honestly noted the parabolic move in the credit markets and warned everyone about the potential for a housing bubble. He could also have mentioned that it was STUPID for people to use adjustable-rate mortgages when rates were at multi-decade lows. He could have encouraged regulations that would have prevented the most egregious types of mortgages from ever coming to market.

He is the captain of this sinking ship, but saw what was happening so he “retired” and left his $h!t for someone else (Bernanke) to clean up.

I have a notion he is NOT stupid and this did NOT happen by accident. Lots of money was made by people who are long gone and sitting on an island or yacht right now.

[Author]

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