Newspapaers always had the headline: This millionaire bought this company in the UK, or in Finland or in France or wherever , instead of saying: This millionaire took a billion-dollar loan to buy this company, and he took it from your local bank, they were having massive private gains at public loss. When you think you can creat something out of nothing , it's difficult to resist. Why do you have big banks? because banks like monopoly power, lobbying power. because banks know that when they're too big, they will be bailed. Markets are inherently unstable, or at least potential unstable, It wasn't real profits or income. It was money created by the system and booked as income. Two , three years down the road there're a default, it's all wiped out. People were essentially being rewarded for taking massive risks, In good times,they generate short-term revenues and profits and therefore, bonuses. But that's gonna lead to the firm to be bankrupt over time. That's a distorted system of compensation. It's very easy to generate performance by taking on more risk. Both times they trot out very prominent First Amendment lawyers, and argue that, "When we say something is rated triple-A, that is merely our opinion, You shouldn't rely on it. " That's very easy to always say that you can always find it. If you're growing, you're not in recession. One of the points of the hub failed, And that had huge knock-on effects around the system. They warned that the alternative would be a catastrophic collapse. It's fair to say that the financial markets today are incredibly complicated . At the end of the day, the poorest, as always,pay the most.
When the company did well, we did well. When the company did not do well, we did not do well. The man who destroyed their own companies, and plunged the world into crisis, walked away from the wrtckage with their fortunes intact. You should regulate more, We're too greedy, we can't aviod it. The only way to avoid this is to have more regulation. It was at the moment where they were afraid. And after, when solution to the crisis began to appear then probably they changed their mind. Increasingly, the most important determinant of whether Americans go to college is whether they can find the money to pay for it. Meanwhile, American tax policy shifted to favor the wealthy. Most benefits of these tax cuts went to the wealthiest 1 percent of Americans. Inequality of wealth in the United States is now higher than in any other developed country.American families responded to there changes in two ways: by working longer hours and by going into debt. As the middle class falls further and further behind, there is a politicl urge to respond by making it easier to get credit. People in the bottom 90 percent lost ground between 1980 and 2007 . It all went to the top 1 percent. For the first time in history, average Americans have less education and are less prosperous than their parents. The era of greed and irresponsibility on Wall Street and in Washington has let us to a financial crisis as seriour as any that we've faced since the Great Depression. A lack of oversight in Washington and on Wall Street is exactly what got us into this mess. There is very little reform. It's a Wall Street government . The most senior economic advisors are the ones who were there,who built the structure. The financial industry is a service industry . It should serve others before it serves itself. Why should a financial engineer be paid four times to 100 times more than a real engineer ? A real engineer build bridges. A financial engineer build dreams. When those dreams turn out to be nightmares , other people pay for it.
For decades, the American financial system was stable and safe. But then something changed. The financial industry turned its back on society corrupted our political system and plunged the world economy into crisis. At enormous cost, we've avoided disastre and are recovering. But the men and institutions that caused the crisis are still in power and that needs to change. They will tell us that we need them and that what they do is too complicated for us to understand. They will tell us it won't happen again . They will spend billions fighting reform . It won't be easy . But some things are worth fighting for.
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