2007 – a year which led to too much suffering. The much-asked question though is, who is to blame for this massive financial crisis?
Consumers blame bankers, while bankers blame consumers and regulators blame the government … Who is right in this chaos?
Consumers to blame?
Some might argue that the consumers should have looked into what they are getting. They shouldn’t have trusted the banks blindly, but instead have done some research.
However, can you really blame someone, who decided to trust professionals rather than the internet or their own judgement? If you think about it you would also ask your doctor before making a diagnosis – you trust a professional’s opinion over your own. Why would it be any different with your mortgage?
Bankers to blame?
Most people, especially consumers, blame the banks. They were being arrogant and greedy. They tried to make the most profits as fast as they could.
How were they able to get this far? The government promised them they would have their backs if the market were to crash – so is it really the banks fault? Sure, they were greedy but they wouldn’t have been able to go this far if the government didn’t support them with a safety net.
Government to blame?
The government provided the banks with this safety net, so surly it’s their fault, right?
Well they don’t think it is. The government argues that they had regulators overseeing the banks actions. It was the regulators responsibility to ensure the banks don’t become too greedy and need the safety net.
Regulators to blame?
They should have kept a close eye on the banks, why didn’t they do anything? They are the last group so surely its their fault isn’t it?
The truth is its not necessarily their fault either. They argue that the government failed to give the regulators enough power to actually interfere with the banks actions and stop them when need be. They were only assigned to overseeing the actions
Honestly, everyone contributed their own mistakes to the major crash in 2007. There is not just a single group responsible for this chaos – it’s a mixture out of everyone’s mistakes.
Rather than asking who is to blame, we should ask how to prevent it in the future – that’s what really matters, we don’t want history repeating itself.