Recent morning on 1190KEX: A guest of the show discussed “the blaming game going on in Congress and Washington DC”, implying that everyone is looking for someone to blame, and maybe trying to extricate themselves from responsibility.

Last Tuesday, in front of City Hall, a Channel 12 News crew and I; if you happened to see it on the 5:00PM news, I was the guy with the new Pendleton hat.
Channel 12: What are your thoughts on AIG paying out huge bonus money?
Me: It’s an outrage that taxpayer money is used to pay millions of dollars in bonus to the very people who have caused all of us to be in this financial mess.
Channel 12: Do you think other people feel the same way?
Me: Everyone I have heard comment on this subject seems to be of the same opinion.

Well now … in retrospect I think that was somewhat unfair on my part. There is a lot more to how we got here than derivative traders at AIG. Not that I think they should get a bonus; they should share in the economic burden with the rest of us who have lost jobs and seen savings shrink dramatically on account of the huge nose-dive the economy has taken.

Certainly there have been financial shenanigans within the mortgage, insurance and banking industries. There has also been unprecedented consumer demand for expensive homes and products, which spurred a production boom in the housing, automobile and other industries. But who is really responsible for it? Who removed the laws that separate savings banks from investment banks? Who removed the safeguards around the easy availability of mortgages and other loans? Who prepared the ground on which exotic financing products and what we now call toxic assets could sprout and grow like weed? And who was excited about the ease with which expensive homes could be purchased, no money down, low monthly payments, use home equity to finance expensive toys and cruises? Did we talk to our legislators about maybe, just maybe, this bubble is likely to implode, just as all the previous bubbles have, and maybe, just maybe, something should be done about it before it is too late?

Certainly, the economy is a mess. As I heard from my friend Marcus this morning, a $700,000 a year hedge fund manager is delivering pizza for minimum wage. Requests for food and other assistance are through the roof, while agencies and non-profit organizations providing assistance find the ranks of their supporters and donations dwindling. Many have lost their jobs. Nest eggs and investments have plummeted. We are worried about or truly afraid for our economic wellbeing.

Is it possible that aside from AIG, mortgage companies, GM, Lehman Brothers, Fannie Mae and Freddy Mac, congress and all of us …? ?

Whatever the answer, I still think it’s wrong to pay huge bonuses to a few, using the tax money of the many who have been hit with loss of income and savings, and who are wondering how long it will take until they can feel financially secure again. And possibly we should talk to our representatives and senators about our thoughts on sensible protections within our wonderful capitalist system. Let’s learn from the past and build for the future; let’s get to work and have a great week everyone!