Thursday, September 15, 2016

HAPPY 2008 MARKET CRASH ANNIVERSARY (I think) ... IS IT TIME TO START JAILING THOSE RESPONSIBLE?


Today is September 15th. It was 8 years ago today that our country went into a national economic tailspin that we're still experiencing, and paying for, on many levels.

As a reminder, I had been following our slow motion market collapse (which I discussed throughout 2008 herehereherehereherehereherehereherehereherehereherehere ... well, you get the point) and suspected that the impending market collapse was upon us. It was. So, 8 years ago today, I blogged about what was happening in the market in real time, and on a Sunday no less. 

I haven't blogged that many times on a Sunday since. But one thing was clear. Ordinary Americans weren't happy with what had happened, and were ready to go after Wall Street ...



In the days after the market collapse, I discussed the possibility of Golden Parachutes for those who caused the collapse (which turned out to be a serious understatement), how global markets were responding (not well), and other market ugliness.

To be sure, I didn't think that the collapse would be so big that it would put the U.S. taxpayer on the hook for at least $12-14 trillion in bailout cash, and other market guarantees. I didn't want to believe that our government would fill up the tank and turn the keys over the people who ran our nation's economic car into the ditch. But this is exactly what happened (while there are few, this market handout is my great disappointment in the Obama administration).

Today, banks are flush with bailout cash and corporate America is sitting on trillions in cash as a result of government's decision to make them whole. 

I bring all of this up because it appears Senator Elizabeth Warren (D-Mass) wants Wall Street to finally pay for the collapse and financial bailout that followed. Senator Warren is using the market collapse anniversary as a platform to suggest that the next presidential administration "investigate and jail" those responsible for the market collapse. While I would like to see this happen too, I'm not holding my breath. Barry Ritholtz has a nice discussion on the proposal, which you can access here

 In all cases, Happy Anniversary (I think).

- Mark

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