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Allan Sloan with Myths Regarding the Credit Crisis

By JLP | July 13, 2012

Overall, I think Allan Sloan does a nice job with this short piece on myths regarding the credit crisis.

The myths:

Myth No. 1: The government should have done nothing.

Myth No. 2: The government bailed out shareholders.

Myth No. 3: The Volcker Rule will save us.

Myth No. 4: Taxpayers are off the hook for future failures.

Myth No. 5: It’s the government’s fault.

He is a little too easy on the government’s involvement in my opinion. While I don’t think the government was totally responsible, they do share in the blame. They created the incentives for companies to do what they did.

Here is a follow-up article if you’re interested.

Topics: Credit Crisis, Economics, Politics | 2 Comments »

2 Responses to “Allan Sloan with Myths Regarding the Credit Crisis”

  1. The Biz of Life Says:
    July 13th, 2012 at 7:54 pm

    The government definitely help spread the fertilizer the weeds thrived on. So I don’t think they are blameless either.

    We are already planting the seeds for the next crop of weeds. Dodd-Frank or the Volker rule won’t prevent the next crisis anyone than Sarbanes-Oxley preventing the last one.

  2. Miguel Says:
    July 14th, 2012 at 8:23 am

    There is no one villain to blame for the mess. That’s the hard part. Fact is that the global financial system has evolved into an interconnected monster of epic proportions, that nobody had the power to keep from growing out of control. Even if you could have predicted it, you’d have to have waited until the inevitable crisis occured to shock everyone into reality, and galvanize a unified effort. Unfortunately, the shock wears off pretty quickly attention spans are short.