6 of top 10 blamed for economic crisis were elected officials
Road to ruin paved with politicians
By Zhen Ming
DESPITE renewed efforts by many governments across the globe, the world faces the grim prospect of a 'bank-made' recession.
Who should we blame for leading us down the road to ruin?
You might have thought we should blame it mostly on bankers on Wall Street, right?
But, no, most of the blame should rest squarely on politicians in the US and the UK.
So says the findings of a poll conducted in late January by The Guardian newspaper in the UK.
The Top 10 'most guilty' comprised the predictable as well as a few surprise finalists:
1) Alan Greenspan
Chairman of US Federal Reserve 1987-2006
FORMER US Federal Reserve chairman Alan Greenspan, 82, was criticised for keeping interest levels low for too long and for his concurrent praise of sub-prime lending vehicles.
The long-serving chairman is also blamed for urging US homebuyers to swap fixed-rate mortgages for variable rate deals, which left many American borrowers unable to pay when interest rates rose.
Blame vote garnered: 31.9%
2) George W Bush
Former US president
MR George W Bush, 62, served as the 43rd President of the US, from 2001 to 2009.
He is blamed for doing little, while in office, to put the brakes on the vast amount of mortgage cash being lent to 'Ninja' (No income, no job applicants) borrowers who could not afford them.
Blame vote garnered: 16.7%
3) Gordon Brown
UK prime minister
MR Gordon Brown, 57, has been prime minister since June 2007. Before this, he was the UK's Chancellor of the Exchequer for 10 years.
He allegedly put City (banking) interests ahead of other parts of the economy (such as manufacturers).
Mr Brown is blamed for backing a low-tax regime for the thousands of non-domiciled foreign bankers working in London.
Blame vote garnered: 14.1%
4) The US public
YES, whether you call him John Q Public, Joe Six-pack or even Joe the Plumber, he should be blamed, too.
Said guardian.co.uk: 'There's no escaping the fact - politicians might have teed up the financial system and failed to police it properly and Wall Street's greedy bankers might have got carried away with the riches they could generate, but if millions of Americans had just realised they were borrowing more than they could repay then we would not be in this mess.'
Blame vote garnered: 11.1%
5) Geir Haarde
Former prime minister of Iceland
THE coalition government of Mr Geir Haarde, 57, resigned earlier this month after widespread (and violent) protests following an economic collapse in October 2008.
Last October Iceland's three biggest commercial banks collapsed under billions of dollars of debts.
Blame vote garnered: 7.4%
6) Bill Clinton
Former US president
MR Clinton, 62, served as the 42nd President of the US from 1993 to 2001. In 1999 he repealed the Glass-Steagall Act, which ensured a complete separation between commercial banks, which accept deposits, and investment banks, which invest and take risks.
The move led to the era of the 'superbank' and primed the sub-prime pump.
Blame vote garnered: 4.7%
7) Phil Gramm
US Senator
MR Phil Gramm, 66, is a former US senator from Texas.
A free market advocate, his work allowed the explosive growth of derivatives (including the much-dreaded credit-default swaps).
Blame vote garnered: 3.0%
8) Christopher Dodd
Chairman, Senate banking committee
MR Chris Dodd, 64, is the senior US Senator from Connecticut.He consistently resisted efforts to tighten regulation on the mortgage finance firms Fannie Mae and Freddie Mac.
Blame vote garnered: 2.3%
9) Sir Fred Goodwin
Former RBS boss
THE 50-year-old former chief executive of the Royal Bank of Scotland (RBS) presided over its rapid rise to global prominence, and its equally rapid fall.
Blame vote garnered: 1.4%
10)Dick Fuld
Lehman Brothers chief executive
MR Fuld, 62, was the last Chairman and CEO of Lehman Brothers. It's collapse in September was to have a catastrophic impact on confidence.
When asked if it was fair that he earned US$500 million ($751m) over eight years, he he insisted the figure was closer to US$300 million.
Blame vote garnered: 1.2%
Source: The New Paper, Sun 08 Feb 2009
Road to ruin paved with politicians
By Zhen Ming
DESPITE renewed efforts by many governments across the globe, the world faces the grim prospect of a 'bank-made' recession.
Who should we blame for leading us down the road to ruin?
You might have thought we should blame it mostly on bankers on Wall Street, right?
But, no, most of the blame should rest squarely on politicians in the US and the UK.
So says the findings of a poll conducted in late January by The Guardian newspaper in the UK.
The Top 10 'most guilty' comprised the predictable as well as a few surprise finalists:
1) Alan Greenspan
Chairman of US Federal Reserve 1987-2006
FORMER US Federal Reserve chairman Alan Greenspan, 82, was criticised for keeping interest levels low for too long and for his concurrent praise of sub-prime lending vehicles.
The long-serving chairman is also blamed for urging US homebuyers to swap fixed-rate mortgages for variable rate deals, which left many American borrowers unable to pay when interest rates rose.
Blame vote garnered: 31.9%
2) George W Bush
Former US president
MR George W Bush, 62, served as the 43rd President of the US, from 2001 to 2009.
He is blamed for doing little, while in office, to put the brakes on the vast amount of mortgage cash being lent to 'Ninja' (No income, no job applicants) borrowers who could not afford them.
Blame vote garnered: 16.7%
3) Gordon Brown
UK prime minister
MR Gordon Brown, 57, has been prime minister since June 2007. Before this, he was the UK's Chancellor of the Exchequer for 10 years.
He allegedly put City (banking) interests ahead of other parts of the economy (such as manufacturers).
Mr Brown is blamed for backing a low-tax regime for the thousands of non-domiciled foreign bankers working in London.
Blame vote garnered: 14.1%
4) The US public
YES, whether you call him John Q Public, Joe Six-pack or even Joe the Plumber, he should be blamed, too.
Said guardian.co.uk: 'There's no escaping the fact - politicians might have teed up the financial system and failed to police it properly and Wall Street's greedy bankers might have got carried away with the riches they could generate, but if millions of Americans had just realised they were borrowing more than they could repay then we would not be in this mess.'
Blame vote garnered: 11.1%
5) Geir Haarde
Former prime minister of Iceland
THE coalition government of Mr Geir Haarde, 57, resigned earlier this month after widespread (and violent) protests following an economic collapse in October 2008.
Last October Iceland's three biggest commercial banks collapsed under billions of dollars of debts.
Blame vote garnered: 7.4%
6) Bill Clinton
Former US president
MR Clinton, 62, served as the 42nd President of the US from 1993 to 2001. In 1999 he repealed the Glass-Steagall Act, which ensured a complete separation between commercial banks, which accept deposits, and investment banks, which invest and take risks.
The move led to the era of the 'superbank' and primed the sub-prime pump.
Blame vote garnered: 4.7%
7) Phil Gramm
US Senator
MR Phil Gramm, 66, is a former US senator from Texas.
A free market advocate, his work allowed the explosive growth of derivatives (including the much-dreaded credit-default swaps).
Blame vote garnered: 3.0%
8) Christopher Dodd
Chairman, Senate banking committee
MR Chris Dodd, 64, is the senior US Senator from Connecticut.He consistently resisted efforts to tighten regulation on the mortgage finance firms Fannie Mae and Freddie Mac.
Blame vote garnered: 2.3%
9) Sir Fred Goodwin
Former RBS boss
THE 50-year-old former chief executive of the Royal Bank of Scotland (RBS) presided over its rapid rise to global prominence, and its equally rapid fall.
Blame vote garnered: 1.4%
10)Dick Fuld
Lehman Brothers chief executive
MR Fuld, 62, was the last Chairman and CEO of Lehman Brothers. It's collapse in September was to have a catastrophic impact on confidence.
When asked if it was fair that he earned US$500 million ($751m) over eight years, he he insisted the figure was closer to US$300 million.
Blame vote garnered: 1.2%
Source: The New Paper, Sun 08 Feb 2009
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