[wfbarks]

I feel like 2008 was an era of irresponsibility. Home buyers took out risky loans, banks sold these loans without accepting responsibility for how risky they where, investors purchased these loans without taking the responsibility to even see what kind of Loans where even in these mortgage backed securities. Ratings agencies abdicated this responsibility too. Goldman lied to AIG, and AIG didn't do the research to understand the credit default swaps they where selling. Central banks didn't accept responsibility for anything, saying "it was impossible to see the crisis coming".

It doesn't appear that we have left this paradigm at all. The only group that has improved is the consumers, households have significantly cut back leverage since the 2008 crisis. But companies have not. Companies don't feel they have any responsibilities to prepare for these long tail situations, and governments don't seem capable of doing it. leaving it to central banks to throw trillions at the problem after the fact.

[oldsklgdfth]

I would argue that the 10 years after 08' have also lacked responsibility.

I think the secondary effects of the covid shutdown are going to highlight some very poor decisions. Mainly rallying the economy, rather than making it more robust. I'm interested in seeing what happens with housing specifically.

[wfbarks]

thats basically my point, Companies still aren't taking responsibility for anything and are running the companies to keep the share price up so the Exec team can collect on their options in 4 years and move on. Similarly the government seems completely incompetent, and willfully blind to the risks being taken.

[oldsklgdfth]

Maybe so, but they are being enabled.

Two things come to mind: - stock buybacks can be eliminated with legislation - Fannie Mae and Freddy Mac are still under government conservatorship

[solarkraft]

I feel like most of the economy (through wrong regulation) is one of irresponsibility.

In many places there is a high incentive to mess things up, but little incentive to fix them.