A lot of talk has centered, in recent weeks around water coolers and coffee pots all around the nation about holding Bank Executives accountable for the current financial crisis. Suggestions that range from firing them, to curbing CEO pay as a matter of law, to criminally indicting them (for God knows what) have crept into conversation all across the land. There is, however, among a few a bit of opposition to holding bank executives accountable. After all; goes the argument, weren't they just doing their best to affect the bottom line? .
To be sure, banks took advantage of loopholes in banking law to give out loans to people that would be unknowingly strapped financially by agreeing to the loans offered, but a bank's purpose for existence is to within the confines of law, loan as much money to as many people as need it, on the basis of commonly accepted risk analysis. Until the housing bubble burst (The longest lived housing bubble in the nation's history) a lot of people who never had a chance made a lot of money off of buying and selling homes. The housing bubble, combined with an influx of do-it-yourself home remodeling shows on television, inspired a new fad in industry known as "house swapping". .
Economic indicators throughout the first part of the new century were mixed. Some analysts predicted a widespread economic meltdown to be brought on by an engorged housing bubble sure to pop, and "predatory lending practices" that would eventually come to a screeching halt, causing a major recession. Others looked at trends and assumed that with the dawning of a new American Presidency, and the military arsenal build-up sure to come after the depletion of weaponry in Iraq and Afghanistan, and assumed the bubble had far more to give.
It must be noted, however, that bankers are not analysts, and bank executives do not make law. Bank Executives have the task of making as much money for their institutions as possible and they are trained, as are any successful business people, to take in positive analysis, and to disregard naysayers that get in the way of furthering agendas.