Seriously. Which is what a lot of us have been saying all along.
The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a federal inquiry.[snip]
The report does knock down — at least partly — several early theories for the financial crisis. It says the low interest rates brought about by the Fed after the 2001 recession;Fannie Mae and Freddie Mac, the mortgage finance giants; and the “aggressive homeownership goals” set by the government as part of a “philosophy of opportunity” were not major culprits.
Of course much of this has been said before and will be said again and we’ll have to listen to a bunch of know-nothings prattle on about how it’s all Fannie and Freddie’s fault.
I like this paragraph:
“The crisis was the result of human action and inaction, not of Mother Nature or computer models gone haywire,” the report states. “The captains of finance and the public stewards of our financial system ignored warnings and failed to question, understand and manage evolving risks within a system essential to the well-being of the American public. Theirs was a big miss, not a stumble.”
The economy isn’t a force of nature and it doesn’t have to be treated as one and the crash of 2008 wasn’t a hurricane we couldn’t prevent – it was the result of choices and a lot greed and a lot of deliberate inaction on the part of people who placed far too much faith in “the market”.