Kyle Bome on 05 May at 12:04Report abuse

Mo,

respectfully, I feel you seem to think that the American people are in reality "sheeple" - noting your comments:

"the consumer is a follower here on several levels"

"Further, it is our economic and political leaders, "elite", who have the responsibility to set the trend. The consumer follows in what she/he believes
are the opportunities afforded by a democratic, equitable and open society."

"While the elite of our society reaped huge wealth, it was not to be unexpected that the rest would follow to try to at least secure their share..."

As children we all followed a friend who led us into mischief. When we told our parents, "I was just following Johnny" we received a slap in the head for (1) being so stupid, and, (2) trying to convince our parents that it was a viable excuse.

I feel you are say, the American consumer has very little, if any, agency. That is both silly and dangerous. When you say, "It is the leaders and
prophets of our society that have to own up" you exculpates millions of Americans who lived beyond their means and knew they were doing so. I believ there will be similar excuse making when the dollar collapses. None of it will be the fault
of millionaire seniors taking Soc Sec checks or country club Republicans demanding more military expenditures. It will all be the fault of some
nebulous "elite," a scapegoat whom we can all agree on to deflect responsibility from those who deserve it most.

My comments do not absolve the "elite" from whatever
responsibility they have in creating the mess. My only point, is that John Q. Public deserves his share of the blame and not some blanket exculpation ringing with Marxist tones about "forces greater than the individual" that can't be overcome.

Elites AND the public have blame to share.

Ambassador muhamed on 04 May at 10:25Report abuse

Hi Kyle, (Excuse the informality):
Undoubtedly the consumer has responsibility, and when viewed in purely quantitative context, it has been the mortgage and consumer lending "bubbles" that have had the most negative impact upon current US economic situation. Nonetheless, the consumer is a follower here on several levels. The "bubbles" started and were more extreme in other "real assets"(as commodities),before the rapid appreciation in home values and expansion in consumer and mortgage credit. Further, it is our economic and political leaders, "elite", who have the responsibility to set the trend. The consumer follows in what she/he believes are the opportunities afforded by a democratic, equitable and open society. While the elite of our society reaped huge wealth, it was not to be unexpected that the rest would follow to try to at least secure their share, (especially in view of the then recent trend to glamorize "conspicuous consumption."

Ultimately, the whole of society has to take the responsibility but leaders have to recognize the consequences of the trends they set into motion and examples they present. For good or bad, we have espoused the virtues of a consumer society, (and I actually believe that there are many positive factors that help bind a diverse society through economic inter-relationships), but then the prophets cannot blame the people for following them to what may turn out to be a promised land not without pitfalls. It is especially inconsistent with our "American Dream" to now lecture the vast middle class that many of them did not and do not deserve and are not eligible for the foundation of that dream, home-ownership. Home-ownership is the most critical part of the social contract in the US as compared to for example the welfare state, or lifetime employment, or free health care, or free higher education that is underpinning of other democracies.

In sum, this financial crisis can claim many culprits, but when it undermines the most integral element of our national mythology, (our social contract), it is the leaders and prophets of our society that have to own up. After all, it is the elite that also profit the most from this social contract which we define as the free market system. Since self-restraint rarely is effective in disciplining "greed is good" philosophy, society as a whole,led by its leaders, has to confront "predatory capitalism" to tame back to something more closely resembling our understanding of truly free markets.

"Ambassador mo"

Kyle Bome on 04 May at 00:25Report abuse

Hello Mr. Sacirbey,

I appreciate you taking a more neutral stance on investment banks necessarily being the cause of our most recent economic woes. With the media constantly putting these firms in the headlines and making them out to be financial vampires, do you feel that WE the CONSUMERS are also to blame? I mean at least 99% of Americans must have their money in American banks, and NO ONE in 2007 or before ever called up their banks and asked them about their insane balance sheets. No one ever blames the consumers who took out mortgages on homes that they could not afford. Doesn't the consumer have some responsibility here with our current situation? I cannot stand how the media simply plays to the public's anger with institutions that they do not understand.