No blame in an equilibrium
Who's to blame for the financial crisis and the recession? This idea of 'who's to blame' is an omnipresent theme of the last six months. A quick search for " to blame for the crisis " or " to blame for the recession " makes hilarious reading. Here are the first few candidates that show up: Over-enthusiastic community organisers Testosterone Economists Deregulation A flawed response to China Business schools (along with 'misguided government programs, "only think for today" financially illiterate consumers, conflicted credit agencies, laughed at (and purposefully weakened) regulators, lobbyist groups running Congress, and many of our best and brightest in the corporate world') Barney Frank and Christopher Dodd The media The government The Internet Owners of imported cars David Bowie The Federal Reserve The free market Subprime borrowers Subprime lenders The head of programming of HGTV Religion What is the appropriate response to thi...