When one looks back at all the past events it does seem to defy credulity that so little was seen or done by those who should have the know-how and authority to have done something early enough and substantial enough before things got to near melt-down stage.
One can therefore understand your sentiments, Madharry.
On the one hand there were those in the private sector who were creating these financial instruments based on an unsustainable asset base and making easy money by packaging these units and selling them. In addition another business was created within the insurance sector to cover these risky instruments.
On the other hand, you had those in the public sector who’s function it is to regulate and determine potential flaws and areas of unnecessary risk etc.., and take appropriate action.
Putting those two aspects together it may not be unreasonable to assume that the two groups were somehow working, or possibly colluding, together for some “common purpose”.
When the unsustainable system finally collapsed the “perpetrators” and the “overseers” came together to ensure their mutual survival at the expense, primarily, of the taxpayer, because from where else does the government gets its revenue.
Once the situation got to near melt-down, there was little doubt that something dramatic and very substantial needed to be done on a national and international level, in order to ensure ongoing financial continuity.
However, that doesn’t detract from the fact that informed individuals, such as Buffett, had long expressed reservations regarding ‘financial weapons of mass destruction’.
But he was, it seems, conveniently ignored while many were making hay while the sun shone.
Fortunately, or maybe unfortunately, sanity and logic will eventually prevail, which is what we’ve seen in recent times. It’s just a pity that cognizance of that fact often comes after the fall.
As the saying goes ... “The rich get richer, and the poor get poorer”!! |
