Blaming the Messenger: When Greece Met Goldman - Editorial Commentary - Thomas G. Donlan - Barrons.com
Question: Isn't it the unethical and destructive nature of the big banks that is ruining the world economy? I believe the destruction will continue so long as the present structure continues and out-sized bonuses are offered as a reward to their conduct.
Answer: Maybe the next bubble is really the out-of-control attempt by developed economies to present their citizens with benefits they can't afford (either individually or societally).
As a result, these economies are all borrowing too much. Ask yourself why banks would be lending so much to governments (e.g. French banks $75 B to Greece), which goes into consumption, rather than to businesses, which can create real long-term jobs?
As such, blaming the banks may be more like blaming the messenger to the king in the old days. Here, the banks and financiers are helping governments continue their populist charade.
Should the banks be blames or the governments? And, if the governments, isn't it the citizens that are to blame for putting them and leaving them in office?
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