The FCIC soothes the injuries resulting from our financial fall as it explains how mortgage-backed securities melted the banks “Like Icarus, they never feared flying ever closer to the sun.”
Remember the ancient story of the attempted escape of Icarus who, although warned by his father not to fly so close to the sun, ignored the wisdom of years and his wax & feather wings melted… plummeting him back to the earth.
After reading the initial summary of the report as described by the New York Times (full report to be released on Thurs.) by the Financial Crisis Inquiry Commission, although the report concludes that it was avoidable, the finger-pointing is so broad that it doesn’t leave out anyone including Dave. In the end it points not to the sun (technically one of the stars) as the cause of the meltdown, but more fittingly to what is now referred to by crisis-experts as ”Wecarus – our collective accountability” as opposed to Icarus. Allow Dave to explain. “To identify a single person, such as Icarus and to hold him accountable, could technically be viewed as hate speech,” Dave said. “You know if someone found out that an individual, say Alan Greenspan for example, or a group of individuals, say Alan Greenspan, Robert Rubin and Larry Summers, were responsible for the global financial crisis, they would probably hate those people. We can’t have that. It’s bullying,” Dave continued.
The report goes onto to support Dave’s theory of “collective accountability” and is an excellent example of how society can employ “choice architects” and still nobody get hurt as long as everybody gets hurt (top 1% excluded). The report even paraphrases Shakespeare’s “Julius Caesar,” when the author pens, “The fault lies not in the stars, but in us.” (the proverbial ”us’” not the FCIC commission members per se and a metaphorical “star”, not our sun in particular)
Technically, with the wealth effect from quantitative easing and the stock market run-up well underway, depending on how you look at the timeline, they’re may not have really been a financial crisis at all. It may all simply be a myth. According to the S & P 500 the repeal of Glass-Steagall is working according to plan.
(chart courtesy of Jesse’s Cafe Americain)
Here’s the New York Times story: http://www.nytimes.com/2011/01/26/business/economy/26inquiry.html?_r=1&adxnnl=1&adxnnlx=1296022623-/6LwaBSusuhrO8P1JXp3fw
You can get the final report here when it comes out Thursday: http://www.fcic.gov/news/pdfs/2011-0124-fcic-announces-details.pdf