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Do you agree with the 'Occupy Wall Street' movement? Why or why not?

I understand that they're all coming together because they're frustrated with the way the economy is moving but.. do they have a unified goal? A fundamental agreement?

Im sorry about my english, I'm still learning :)

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Topics: economic protest

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  • Oct 10 2011: Bankers are not (primarily) to blame for the credit crisis.

    It is sad and shocking how many people (even educated people) have the view that the credit crisis was caused by bankers. I guess it is not surprising that people have this view given that the politicians (in order to deflect responsibility and find a scapegoat) blamed the banks, and the mainstream press (driven by envy) swallowed it without question.

    The creating of the housing bubble and its bust is quite complicated. Not easy to explain in two sentences. Not easy to point the finger at one group.

    Public discourse doesn't handle complex problems like this well. The media and public need one simple answer: it's the fault of the jews !!!(during the economic crises in eastern europe before WWI), it's the fault of the bankers!!

    so I have tried to explain whose fault it is as briefly as I can

    Here are the steps and components in the process which created the housing bubble (just one part of the overall credit bubble), which when it burst caused the credit crisis.

    1. Very low interest rates - set by the federal reserve bank (Greenspan)

    2. Very lax bank lending rules which allowed for 100 pct financing of home purchases with zero down payment (allowed by the federal reserve bank, federal laws, and state laws). France and Canada on the other hand, which did not experience a housing bubble had federally set limits on mortgage lending capped at 70 pct of the purchase price. Given that the housing bubble created a lot of jobs (in construction for example) and allowed many more people to buy homes than would normally be feasible, it was political suicide to object to these policies - given the short term orientation of US democracy

    3. Mortgage origination companies falsifying financial details of applicants for mortgages because they get paid on volume, take no risk on lending and package the mortgages to send off to banks and other lenders.

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