I’ve read the following article written by Martin Crutsinger and Marcy Gordon regarding the questioning of former Federal Reserve Chairman Alan Greenspan by Congress’ House Oversight Committee. Here is one link to the article: http://www.baynews9.com/content/9/2008/10/23/395306.html?title=Greenspan%20denies%20blame%20for%20crisis,%20admits%20’flaw’ there are several other news organizations similarly quoted.
“”Greenspan, 82, acknowledged under questioning that he had made a “mistake” in believing that banks, operating in their own self-interest, would do what was necessary to protect their shareholders and institutions. Greenspan called that “a flaw in the model … that defines how the world works.”"
To think that anyone, let alone a bank (or a banking system) would protect their shareholders when they personally stand to “earn” (read: strip) their own institution is a huge part of Greenspan’s entire philosophy and shows just how naive and out of touch he was — and just how messed up — our system is. I am not just discussing our politics or our economy. This is such a base metaphor for the growth of moral decay as I have ever seen or imagined, and yet it exists.
I believe that it boils down to is this: Mr. Greenspan had 18-1/2 years in a growing free market culture where greed and lack of ethics has become more than just an occasional lapse by poorly-raised individuals, it has become the norm. When he took over this highly charged position, he was fixed in his belief in the decency of everyman. He didn’t take into account the decay of morality that has taken place in our society. In fact, social narcissism is the norm, rather than the exception, and I see it every day in my tiny little shop. It’s rampant in people who would pass a bad check or a counterfeit bill;in those who would keep money they are not due; in those who would stand idly by and watch someone dying and do nothing to help. It’s prevalent in those who would take another person’s identity to use their credit or medical information fraudulently for themselves.
Mr. Greenspan apparently didn’t take into account that a few people in charge of huge sums of money, given rein to run with the bit in their mouths, would take such advantage that a new breed of legalized thievery has arisen. This is no longer a capitalist society. We have a new caste system in America that has gone well beyond just the Haves and the Have-nots.
Most of us are well aware of the 80/20 rule: 80 percent of the country’s wealth is in the hands of 20 percent of the population. A few of those 20 percent are involved in the “growth and sustaining” of our banking and mortgage industries, and I’m sure many of those in positions of power over the past 18-1/2 years have been enjoying the vast opportunities that existed within the industry. Who better to know how to make money work for them than someone with the education and position? Now, I’m not saying that every CEO or COO of all of the banks, savings and mortgage companies in our country are bold-faced thieves, just that many of them have the skills to work it all to their advantage.
And why not? The policies in place were not there to protect the banks, the shareholders, and certainly not John Q. Public, are they? Really? JQP has had to stand by, wringing his hands and wondering why — every time he (or she) turns around, they were paying a new fee for every service the banks came up with. They wondered why the nickles and dimes they are continuously told to save are conveniently being scraped out of their pockets and into the banks’ own cavernous vaults. Why can’t JQP retire? He’s had 40 years of working to put back the money! Why, he must not be very good with his cash! (Heaven forbid if he has to work for nearly minimum wage! And, shouldn’t he be grateful for that?)
Indeed, life takes most of us by surprise. We are, after all, human. So, those of us who grew up and lived by the Golden Rule are almost always surprised when the theft comes – not with a gun and mask – but over the counter with a coldly smiling face, blank stare and a banking policy explanation. So, don’t let your water heater break. Don’t buy a new car. Don’t move from your home. God forbid if you should divorce, marry or have children. What will you do if your child wants to marry or go on to college? There’s another 5, 10, 15 year payoff that will drain you dry.
It seems to me that the officials who have been in charge of mortgage and banking policies for the past 2 decades should be investigated. Let’s look under the hoods of their Mercedes and at their vacation homes and off-shore accounts and see just what they did to “earn” their million dollar severances and retirements. How DID they rape the system that was in place?
I am sure that the 80 percent of the population who simply survive would stand up clearly and say, “I didn’t do anything,” and be truthful, at least about that. Many more in our banking industry would say, “I didn’t do anything,” and while being truthful, could possibly also add, “but I know a lot more”.
The rest would probably think quietly to themselves, “I’m in control. I know what I’m doing. I like raping and pillaging”. They are certainly being truthful. What really pisses me off is that they were given license to do so, and now most of the 80 percent are going to pay for it.
I don’t know about everyone out there; I only know about myself. My family did not come to this country to be ripped off by banks, by taxes, by government. We came to live an honest life, to worship as we chose, to love our families and to live safely. Many of us don’t care that we don’t have millions, we just want to be comfortable and live decently, under the laws and in the lands of this great country.
So, what the hell happened? When did ethics get thrown out the door? Isn’t it about time that, at their earliest ages, we start teaching our kids again and anew what honesty and ethics are supposed to be about? Should we not hold those accountable who have taken so much from so many and quit asking innocents to pay for something they had no party in?
I am not going to say that mortgage and banking consumers had no responsibility. On the contrary, every consumer has the right – and even the obligation – to go in to a closing on their prospective property; to check out every single piece of paper; to make sure the terms are fully understood and clear. As with many folks, people want others to be responsible, so, like sheep they follow the shepherd. When the shepherd is not a true shepherd, but a wolf, and they still trust and follow, they tend to get eaten alive, one after another. It is much too easy to say, “I don’t have time to read all of this!” We already know we don’t have the time or even the inclination, right? It’s even more difficult when you’re in that big, cold room and the closing personnel are there, waiting expectantly for you to sign off on every piece of paper they throw at you.
Of course they give you an explanation. The 15 second “This-is-what-this-paper-is all-about-sign-here-and-here-and-here” spiel is the easiest way to get through it all. No one wants to appear ignorant, so we take them at their word. We blindly allow them herd us from one gate to the other.
So, who are the advocates? The loan broker didn’t say no. The underwriters didn’t say no. The mortgage company didn’t say no, nor did the title company, the lawyer or the consumer. Slaughter, indeed.
What are we left with now? Whose responsibility is it? How is the blame to be distributed? And we already know those who should be most held accountable will be in Rio or Cabo, enjoying their mojitos and sunshine, don’t we?
Cynicism rules! As evidence, this very article. Greed advances. Power has already corrupted. Politics is a farce. America, the once fat and slumbering giant, stands now at Wall Street with a thoroughly confused look on his “Uncle Sam” face.
Is it no surprise, really, that young people camp out there too, waiting for the brokers to leap from the Exchange windows with cameras in hand in the hopes that they are the next Youtube wonder?
I wish I had answers, but all I can advocate is decency, honesty, morality, ethics. Treat others as you want to be treated! I’d love to be able to live with my door unlocked again. Why must we live in fear? I suppose I am too idealistic and naive.
I once attended a small business seminar in Dayton, Ohio. The speaker was a real estate mogul who said, “You can feel for the person on the other side of the door. That doesn’t mean they get free rent. You have to evict them if they cannot pay. Their issues are not your issues. You are in business for yourself.” He went on to extol the virtues of “decided inhumanity” (my term); which means, basically, if they can’t pay today you certainly can’t expect them to come up with the money tomorrow, so your only choice is to be rid of them and as quickly as possible so you can get someone else in who CAN pay. It would seem a great deal of our current problem is that philosophy, and the decision is now backing up into the very choice that our financial market has NO CHOICE BUT to work with the very people they attempted to defraud.
Now, here’s the final catch. We all know that paper financials can be manipulated. We really aren’t stupid. Projections are guesses built upon formulas; and it seems our economists have been very lucky in their projections the past 20 years, haven’t they? They have accomplished what the earliest financiers dreamed! It’s like the ultimate multi-level marketing scheme, and they never had to recruit! Oh, my goodness, to have a tiny piece of that beautiful pie… and now, the pie has been dropped on the floor and found to be rancid.
I’d say the baker was flawed in the ingredients…
It’s time for everyone to get real.
1 Comment
October 24, 2008 at 12:14 AM
To anyone with the nerve to actually read the entire article, I apologize for it’s length. Thanks for your patience during my rant. I was quite annoyed.