Why is it that governments around the world did nothing until financial death was knocking on the door?
For they were told at least five years ago about the dire state of the international financial markets. There are clear examples of this knowl
edge that they had at the time.
In 2003 the former US Federal Reserve chairman Alan Greenspan warned of the forthcoming financial collapse of the US if Fannie Mae's activities were not reined in.
The government did nothing and Fannie Mae was allowed to continue operating until only last month, some five-years after the warning from the US's top banker.
Indeed, the 30 per cent of mortgages in the US which are toxic mortgages equates to losses for the banks of 3.1 trillion dollars. Therefore how could politicians overlook such a failure, it has to be asked? The only answer can be incompetence and complacency at the highest level.
In 2006 the Bank for International Settlements, the world's most prestigious financial body and the central banker's ultimate bank, stated that the financial world was in a diabolical state and that it had to change. No government throughout the world intervened until it is was too late.
Clearly, therefore, it is the politicians who are to blame for all the mess that we all now find ourselves and due to them not taking any action years ago.
It is not only the bankers therefore who need sorting out but their bed pals the politicians as well. For both have made enormous financial benefit out of this unprecedented, irresponsibility and appalling personal greed.
Dr David Hill
World Innovation Foundation Charity (WIFC)The full article contains 286 words and appears in Evening Courier newspaper.
