I posted this earlier but I should have led with this quote or paraphrase from — well I forget who, possibly one of President-elect Trump’s cabinet picks or candidates — I’ll try to find out. But he said:
The Great Recession was caused by the government (both Democrats and Republicans) pushing for easy money to home buyers, the greed of Wall Street, and borrowers (the home buyers) taking on more debt than they could handle.
I can agree with that. There is a price for easy money.
Could not find the name for sure or the exact quote I heard on NPR but I think it was from Steven Mnuchin, a financier with a long history at Goldman Sachs in his past, and a hedge funder who made money buying failed mortgages in the Great Recession and going heavy on foreclosures it has been charged. But he is said to be more of a pragmatist than and ideologue and that he has donated to both the Democrats and Republicans. He has been selected by Trump to be Secretary of the Treasury.
At any rate it will be interesting to see what Trump and his team can do. In the news of course is a supposed deal to save some of those Carrier jobs from going to Mexico.
And back to my original version of this post:
I think I made more than one post during the presidential campaign noting Hillary Clinton’s paid speeches to Wall Street at the same time she was campaigning in the fashion of representing the public as a whole rather than Wall Street or the investment bankers.
And of course Donald Trump played that up big too.
But now, and I suppose it should be no surprise, the billionaire president-elect is turning to some Wall streeters, especially the infamous Goldman Sachs firm, to fill some cabinet posts and for advice.
So not too surprisingly, after reportedly being locked out of the Washington power circle under Obama and since the Great Recession for which it took much blame, it looks as if it will be back to business as usual with Wall Street playing prominently, or did it ever not? I notice Obama never did make the bankers pay for their mistakes like he promised he would.
I don’t have much to add except in our society money rules.
And by the way, the notion that there was greed all the way around in the Great Recession is not a novel one — old news of course. I think bad policy by the government, greed by the lenders, and unrealistic thinking and general ignorance in money matters by the general public and the normal boom and bust cycle of a capitalist economy were the causes.