The authors of an unrehearsed play
17 February 2009
The Guardian published this month a ranking of those responsible for the global economic crisis. The list is headed by former chairman of the Federal Reserve Alan Greenspan.
Bill Clinton endorsed a law that allowed people with fewer resources to seek home loans.
George Bush was inert in front of worsening of the problem and was unable to put a brake on subprime loans.
Dick Fuld was Lehman Brother’s number 1 when the bankruptcy was announced in September 2008. He has left Lehman Brothers heavily exposed to mortgages of low quality.
Gordon Brown despite having previewed the crisis, did nothing to prevent it.
Hank Greenberg took expensive trips for himself and other AIG executives, while the largest insurer worldwide went under. Greenberg spent AIG’s US$400 thousand in a spa resort for its top employees.
Mervyng King took too long to realize how deep the crisis.
Abby Cohen sinned by excess of optimism, refused to accept the crisis’ gravity.
Phil Gramm was the main individual responsible for the financial deregulation that would detonate the mortgage crisis.
Alan Greenspan (last but not least) – The Fed had the authority to stop the granting of credit to supply the market for subprime mortgages, but Greenspan did nothing. With this, the housing bubble burst. He admitted his mistake in an interview.