There Oughta Be A Law!

[xthread]

In another venue, someone argued 'the people who caused the mortgage meltdown be in jail?!'

I don't know if any of you, dear readers, happen to hold that view, but, if you do, would you be so kind as to tell me, in general terms, who you think ought to be in jail, and in specific terms, what you think they should be in jail for?

Let me note two important things at the outset: remember that lying to people is usually only against the law if you're doing so to cheat them out of money (which is why Bernie Madoff is in jail), and it's unconstitutional to make laws that make something retroactively illegal.

Got your moral outrage ready? Go!

Comments

[corpsefairy.livejournal.com]

It's at least partially someone else's responsibility if that someone, who is supposed to be a trusted expert on your side, assured you that you could handle it. That person has experience! They're working for you! They should know how these things are likely to turn out, right?

[xthread.livejournal.com]

Yeah, I don't actually have much trouble with either mortgage lenders who falsified documents going to jail or borrowers who falsified their applications facing the full recourse of the law.
What I'm curious about is why people look at this and assume that it was all the result of bad actors - it looks to me just like any other speculative bubble, and while I'm sure there were a fair number of bad actors, the system should have spun horribly horribly out of control even if everyone involved were well-intentioned and completely honest, so I'm not surprised that it blew up. And I think that David has succinctly answered my 'why do people think that?' question.

[kest]

do you assume speculative bubbles are inevitable and can (should?) never be controlled?

it's not just that this was a speculative bubble. It's that it was such an *obvious* speculative bubble, being all spade shaped and stuff. It should have been obvious to anyone with half a brain where certain things would lead. But apparently rather than a bunch of people having half a brain, there were only a few brains that they passed around between them, and when the music stopped the ones with the brains got out rich, and the ones with none were left holding the bag. Seriously, a lot of people involved had *no idea what they were doing*. Which, yes, isn't illegal, just stupid. But putting those people in those positions? Coming up with a bunch of this stuff in the first place? Bending and changing the regulations so that it was easier? People with brains did that, and some of them came out ahead and are still employed, which I find deeply creepy in conspiracy-theorists-can't-make-this-shit-up kind of way.

[dixiemouse.livejournal.com]

For about the last 10 years, there has been this ridiculous trend of putting those less than competent in positions of authority (MCI is the one that sticks out the most to me)... I have some friends that are dealing with similar ordeals in their companies. If someone has a track record of leaving a bigger mess than they walked in to, why do they keep getting hired? And if, there are all these articles about resumes and don't pad/lie, how else are some of these people getting to where they are?

I am torn between conspiracy theories and blatant communicable stupidity.

[dixiemouse.livejournal.com]

Perhaps it's my cynical nature, or something even less flattering, but when I walk into a financial institution (or pretty much anywhere) I walk in with the expectation that they are looking out for themselves first. I am secondary AT BEST. Not to mention that most people that are doing the paperwork barely have more knowledge of what they are passing along than the people walking in. Nowadays, it seems the "trusted experts" are right up there with being the President of a bank 20 years ago.

I'm not saying that there were not people taken advantage of, or that those that were deserved it or asked for it. More, that there is more than just One single scenario that led to this and a Blanket Fix of "send 'em to jail" or hot chocolate enemas or whatever the justice of the day is proclaiming is not going to fix the problem, because there's more than one problem.

More and more, it seems, there is a need for a "fall guy" and quick answers to complicated issues. As easy and perhaps satisfying as it may be to point the finger and ride someone out on the rails, it's not actually going to solve the problem(s). Unfortunately, it's going to spur a greater divide between the right and left sides of the fence, leaving those like me, who like to sit on it, really screwed in the aftermath.