Wall Street's Ten Biggest Lies For 2010

huffingtonpost

What a great year for Wall Street: profits up, bonuses up and, best of all, criticism down, especially from Washington. Somehow Wall Street has much of America believing its lies and rationalizations. We're even beginning to forget that Wall Street is largely responsible for the economic mess we're in.

So before we're completely overtaken by financial Alzheimer's, let's revisit Wall Street's greatest fabrications for 2010. (For the full story, please see The Looting of America.)

1."Honest, we didn't do it!"
Two years ago Wall Street's colossal greed crashed our economy. Our financial elites created and spewed highly leveraged toxic assets around the globe. These poisonous "innovations" pumped up the housing bubble and Wall Street grew insanely rich in the process. When it all burst, we learned that the big Wall Street institutions that had caused the crash were far too big to fail -- and too connected. High government officials came to their rescue with trillions in cash and guarantees -- underwritten, of course, by we taxpayers. Everyone knew this at the time. But if you asked just about anyone on "The Street" they denied all culpability and pointed the finger everywhere else: Fannie, Freddie, the Fed, the Community Reinvestment Act, tax deductions for home buying, bad regulations, not enough regulations, too many regulations, too much consumer debt, the rating agencies, the Chinese -- and on and on. Sadly, their blame-shifting strategy worked, bamboozling the media and people across the political spectrum. The GOP members of the Financial Crisis Commission are so drunk with this Kool-Aid that in their minority report, they refuse even to use the words "Wall Street" or "speculation" in assessing the causes of the crash. Hypocrites? Crooks? Morons? Take your pick.

Somehow, while we lay off teachers and firefighters and low-level government employees take a big salary cut, we seem to forget that Wall Street is the reason for this huge recession/depression.

Democrats blame Republicans and Republicans blame Democrats. The fact is Wall Street got us into this mess and then got bailed out by the government. The fat cats are once again rolling in dough and Wall Street is ready for the next scam, confident that we all will come to their rescue if, and when, they come up with some more risky and reckless get-rich-quick schemes and throw us and the rest of the world into financial chaos once again.

Lots of people on ATS, especially libertarians, seem to believe that big business is always good, never wrong. They read too much Ayn Rand . There are times when we the people need to put curbs on those who would impoverish the average American and not care.

I understand the need for a bailout, and it's true that the Obama administration has passed some legislation to better regulate Wall Street, but not enough has been done to insure that we will be safe from the greed of a few.

I understand the new Republican chair for the banking committee in the House has said that the new regulations "are there to serve the banks." Left, right, center, we all are suffering from the careless and greed of a few.

Great article OP. Thanks for the find.

It amazes me how folks fall for the blame ruse. Wall Street blames the Government. The Government blames Wall Street. Yet, when it come to finance, they are one in the same. They jump from the private to public sector whenever greed duty calls. Neither cares about the small business man, the average worker, or their country.

The part I always find funny is the pseudoscience approach to support paying these folks astronomical sums of money. They see it is survival of the fittest and they are the fittest. Maybe they are but only when they design the system and its metrics. Those who work in a values neutral environment have the clearest sailing. Greed is an extension of investment strategy. Anyone who questions the legality of their operation is anti-american. Theft is just an extension of business. I can always find the best deal in town if I steal whatever I am looking for. My bottom line never takes a hit. I am indeed shrewd.

My next favorite thing is when those mentioned above start with their actions being an investment in America. Without their machinations, innovation and productivity would die because there would be no capital to support it. True patriots.

My question for Tim is: If Apple creates iPhones, what does Wall Street create? Warren Buffett says it creates "financial weapons of mass destruction." Paul Volcker, Reagan's Fed Chair, said there is not a "shred of evidence" that "financial innovation" is beneficial.

Yes there is a war of terror going on, but like in all wars deception is a part of it. The constant attack to the social security of the nation is showing who the real antagonists and victims are. Greed is the enemy and responsibility is in a critical state throughout the big house.

Wall Street has always lied to the public. There is no truth to be found in government.
I don't care about liars.

One lie that was missed, that they are not paying off both parties and that they are not in bed with the government.

only 10?


They are all big lies.