May 28, 2011
I’m writing today, even though I currently live in Australia, because the whole world was affected by the economic collapse of 2008, and nobody wants it )or anything like it) to happen again.
The financial sector caused the collapse and unbelievable greed and illegality played a big role in how it happened. Regulations to control the greed are obviously necessary as the financial sector has shown that it has no social conscience and cannot control its desire to make obscene profits despite the total misery this causes to others.
Wall Street greed and outrageous pay practices were a major cause of the collapse. One way to change the incentives so they don’t collapse our economy again would be to delay the bonuses for three, five or more years. That way, we’ll know if the loans they made in year one remain good. In the bad days, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality.
Furthermore, if illegal practices are involved then prosecution and confiscation of any financial benefits accrued from such illegality should occur.
Thank you for considering my comment,
Lou Baxter
Melbourne, ot