Thursday, December 11, 2008

What went wrong? A post-match analysis of the Credit Crunch

Jesse quotes Joseph Stiglitz, and summarises five key moments:

1. Reagan's nomination of Alan Greenspan to replace Paul Volcker as Fed Chairman

2. The Repeal of Glass-Steagall and the Cult of Self-Regulation

3. Bush Tax Cuts for Upper Income Individuals, Corporations, and Speculation

4. Failure to Address Rampant Accounting Fraud Driven by Excessive and Flawed Compensation Models

5. Providing Enormous Bailouts to the Banks without Engaging Systemic Reform for the Underlying Causes of the Failure


James Higham said...

6. Solve absolutely nothing.

Nick Drew said...

#4 is a really interesting one and like yourself, Sackers, I reckon 'fraud' is meant here in the literal sense

are there enough forensic accountants, prosecutors and courts to bring them all to book ?

Sackerson said...

James: the game goes on until it can't go on, I suppose.

ND: ...I wish.