Someone should go to jail for creating this economic crisis, but who?

[ProSense]

Name one person or company who holds the most responsibility for the current crisis. I'm sure there are more culprits, but who should be the first to be prosecuted?

I think it should be AIG's senior executives.

[bbinacan]

1. I think it started with

Freddie and Fannie. That's where the real blame lies.

[karynnj]

14. Not true - they are scapegoats

The FMs bought mortgages from companies that wrote them. Some of the companies that wrote irresponsible predatory mortgages pressured the FMs to buy some of these bad loans with the good loans. But, as of last fall, they bought 17% of the bad loans - their private industry counterparts bought 83%.

Even so, without derivatives and credit swaps, this would have simply been a foreclosure crisis. Now, it was Phil Gramm who wrote legislation to:
1) get rid of Glass/Stegall
2) make it law that there was no regulation of derivatives and credit swaps

These and Bush's head of the SEC's allowing leverage to go from 1 to 12 to 1 to numbers like 44.

Now, neither of these actions were illegal and they were not done to intentionally destroy the world.

[LakeSamish706]

2. Former Senior Executives, cause there aren't any left that did the damage!

And I seriously think that the Bush Administration was involved in this crisis, and perhaps instrumental in it; ie: Another 911 only this one was an economical one.

[ProSense]

5. No, some are still there

Looks Like AIG's Chief Risk Officer Still Has A Job!

[LakeSamish706]

7. Wrong reply place... Thanks, I didn't know that any were still there....

Bet his job isn't what it used to be.

[DJ13]

3. Hank Paulson for his time as CEO of Goldman Sachs

He played both sides in this.

His begging of Congress to loosen the leverage regulations as CEO fostered the derivatives explosion.

Then as Treasury Secretary he funneled money directly to his old firm.

[LakeSamish706]

6. Thanks, I didn't know that.... I bet his job is a little rough these days.. n/t

[Thrill]

4. Most seem to think Goldman Sachs and AIG are the ones.

Not sure how true it is

[Rosa Luxemburg]

8. I would start with Phil Gramm

http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350_1877330,00.html

[xiamiam]

9. whomever lobbied to deregulate as well as those who took the money...nt

starting with glass-stengahl...

[roseBudd]

20. I agree Phil Gramm, he uses his mother's story to laud subprime

[Rosa Luxemburg]

30. he is the main one

[Better Believe It]

10. Well, it started with this roomful of deregulators but we can't send them to prison

[ProSense]

11. Being wrong is not a crime.

Intentionally misleading and then aiding (as Gramm did) the companies who ripped off Americans is criminal.

[Jennicut]

13. Yup. Gramm needs to be hunted down. I am only for vigilantism in this one case!

[Jennicut]

12. I think it started with Reagan's constant push for less government but he is dead

Oh well.
It got pushed and pushed and the 1990's were successful. Everyone thought it would not matter if we repealed that act. Greenspan and Gramm were the major culprits. Of course Clinton and the other Dems who eventually went along with it though I bet many of them majorly regret this vote. Or maybe not as they got campaign contributions from the banks/firms who benefited from this.
What a freakin huge mistake.

[Sebastian Doyle]

15. Every single living person who has ever worked for Goldman Sachs.

There may be some divisions of AIG (an insurance company) that do something legitimate. But what does Goldman Sachs do that benefits anybody other than those who are already far too rich?

Beyond that, anyone in Congress past or present who ever sponsored deregulation which made this fraud possible.

[ElsewheresDaughter]

16. Gingrich, Graham, Alan Greenspan,

[YvonneCa]

17. Whoever it was that decided, knowingly, to call them SWAPs...

...instead of insurance in order to escape the regulation that was required for such a product if the word 'insurance' was used. That's deliberate deception, IMHO, and that ENTITY or PERSON should be prosecuted. Was that AIG or someone who worked there? I don't know.

[Historic NY]

18. BUSH - CHENEY - ROVE come to mind

[vaberella]

19. I'm taking out Phil Gram and Alan Greenspan. I'm not sorry, Andrea Mitchell....you can join him. n/t

[Skwmom]

21. Go to jail? Many were rewarded with positions in the Obama Administration.

Oh wait a minute. I forgot. They must have learned from those major screw-ups. Well if that's the logic of Team Obama, why don't they just bring back Rumsfeld and put him in charge of the Defense Dept b/c surely he's learned from his mistakes.

:rofl:

[ProSense]

22. Really? Let me repeat

Someone should go to jail.

[sakabatou]

23. Bush's economic advisors

[OwnedByFerrets]

24. My vote goes to Phil Gramm

Although Clinton is not guiltless either.

[omega minimo]

25. look

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5345808

[uponit7771]

26. Rating agencies, then AIG for lying about exposure to CDS's

[Teaser]

27. Fisher Black

.

[Deja Q]

28. American workers/consumers. We're blamed for everything else already.

:shrug:

[chimpymustgo]

29. Geithner, Summers, Friedman...the economic/tax team!

[asdjrocky]

31. I'll go.

At least I get a roof over my head and three meals a day.