The global credit crisis is the fault of the US for not having regulated Credit Default Swaps.
By
Cobra Baghdad
on October 07, 2008
I'm not going to explain the entire CDS crisis, but to note that if you google search "This American Life" they spent an hour talking about it this weekend. I'll also note that Warren Buffett referred to them as "economic weapons of mass destruction." I'll also note that they were unregulated because of a congressional action initiated by Phil "The Economy is Great, Americans are just a bunch of whiners" Graham, though was voted for by a majority of Congresspeople in both houses.
Part of why we didn't regulate them is for the reasons why Alpav hates government regulation. The other reason is because republican anti-regulation policies are short-sighted and irresponsible, but sound compelling. Graham's political career is over now, so he can't do it again. But remember when your taxes are increased and your mortgages are too expensive for you to afford a house due to the 700 billion dollars worth of debt we've accrued, that deregulation was largely responsible.
Agreed
12
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Discussion (7)
Not solely, no. There's about ten different factors that combined to produce the current crisis. See also "Greenspan, Alan".
D'A
This claim is an over simplification. D'A is closer to the truth.
@ the non voters who have previously commented.
Note that while (noninclusive list): people, guns, bullets, gaping chest wounds, and bloodloss and shock as a result of gaping chest wounds are integral to people being killed as a result of a drug deal gone bad(or pedantically, to any given drug deal gone bad where someone is shot and killed), I feel that it is entirely appropriate to lay the fault of the death of at any of the above causes is entirely appropriate.
To put a finer point on it, just as I would expect you to vote agree that : guns kill people, people kill people, bullets kill people, etc. I expect that you would vote agree on : The global credit crisis is the fault of deregulation, The global credit crisis is the fault of Alan Greenspan, The global credit crisis is the fault of Americans not learning anything from the great depression, and this claim.
[who had not voted:]
Fair enough.
D'A
I would vote against it being the fault of Alan Greenspan. But, in general, I agree with Ben's statement. I'd also note that it was the US who deregulated, it was the US who put Greenspan in that position. It was the US who didn't learn anything from the Great depression....
Yay Blame! You know what I like about blame? You can divide it many different ways without it being lessened.
The objective fact w/r/t blame not being lessened when spread is in direct contradiction to social convention. As the number of people at fault increases, it becomes harder to impose sanctions upon those at fault, and is abandoned if a significant number of people are to blame for a particular clusterfuck, while the number of people who fucked up and the extent to which they fucked up decreases not a whit.
Claims inspired by this comment
I wish cake was more like blame.The beauty of my primary choice (the US) is that it speaks to the other causes, because those other causes are all part of the whole.