Davis 1 Sheridan Davis Prof. David M.

Jackson HUMA 1100 15 February 2014 Greed, Corruption and The American Way The Starter Selecting the values we live by is an important feature in how we make decisions or handle situations. If we take ownership in the process of selecting our moral and ethical code as individuals then as a consensus society must do so also. As consumers it is convenient for us to lay complete blame on the financial institutions for the economic collapse of 2008; although society must also take some of the responsibility. In our society much emphasis is placed on material wealth and the almighty dollar. Living beyond our means has been made too easy through high interest and high balance credit or loans. To re-evaluate our values we need to ask the following questions: Who was to blame for the 2008 credit crisis and ensuing great depression? How are they to blame? What should be done about their wrong doing? The Sum-up Susan Andersons article We Are Our Values, discusses the importance of how and why we choose our values. She feels that the values we live by are the most important detail we each face in life. These values are not a one-time event, it is an on-going process that develops as we grow and experience life. We should hold to our values, but be open to change if an argument is persuasive enough. Andersons article is divided into three sections which bring up issues that affect our value system: the recent pressures in society that discourage us from examining our

Davis 2 beliefs, the sometimes difficult decisions concerning important issues we face in choosing our values and how to reach a consensus within society, and the criteria that should be considered in satisfying personal or societal values. Inside Job is a documentary directed by Charles H. Ferguson about the world financial crisis in 2008. The film is divided into five parts to illustrate what happened: How We Got Here, The Bubble 2001-2007, The Crisis, Accountability, and Where We Are Now. He delves into how Lehman Brothers bankruptcy, Merrill Lynch forced to sell itself and AIGs collapse impacted the world, sending it into a global recession. Ferguson explains how deregulation in the 1980s and the introduction of derivatives in the 1990s brought instability within the industry. The rampant greed and corruption was compounded through risky investments with depositors, and betting against bundled mortgages and other loans or debts. The Breakdown Two important pressures or impediments within society that Anderson brings up in her article are substituting legality for morality and the ethical issues that the advances in technology present. Both of these points play into the issues surrounding the economic crisis from the documentary Inside Job. The banks and investment firms tempted by power and commerce took advantage of consumers who did not know the complexity of derivatives, leverage, credit default swap (CDSs) or collateralized debt obligations (CDOs). They did this knowing full well that gambling with chance was ethically and morally wrong; because of deregulation of the financial sector they justified what they did for the reason that it was legal. The opportunity was there so they took it. However the opportunity to acquire wealth by the banks produced inequality of

Davis 3 wealth within the industry and throughout the middle class. The result was billions of dollars in bank bail outs, global wide loss of savings, home foreclosures and unemployment. The Blame Game It is safe to say that Wall Street, the lobbyists and the Politicians in Washington are solely to blame for the global financial crisis. There was mismanagement of sub-prime mortgages, excessive bundling and sale of loans to investors, and the risky bets placed on the securities that were backed by loans; the banks are not totally at fault. Yes they hid their excessive leverages and relied heavily on short-term debt, however there are many who played a part in the disaster. Such as the consultants who were hired to examine financial practices, but ignored the warning signs and without question awarded AAA ratings, claiming everything is just fine; the government for failing to follow through on regulation of the financial practices of our banks and the accountability of the culprits ultimately responsible; as a society we are also partly to blame. We are shown through the media, television, the internet, the people around us that to achieve success and social standing the accumulation of material wealth sets you apart from the other groups in society. If something is constantly thrown at you, even if you know you shouldnt, at some point are you going to say ok? It is human nature to believe what we want to believe or what we are told to believe. Unfortunately that often means believing in something that is too good to be true and placing trust in the wrong people, i.e. sub-prime mortgage loans that in most cases could not possibly be repaid. We are constantly striving for bigger and better, a nicer car or bigger house. Isnt that part of the American Dream? To have it all! The Dilemma Those in the banking and investment institutions took advantage of the opportunity that

Davis 4 was placed before them greed and money. There needs to be accountability to stop this from happening again. The American people have been forced to accept responsibility through the actions and inactions of others. We have lost jobs, retirement savings, and our homes and yet there has not been any proposed regulation of financial practices by the government or prosecution of the top executives involved. It has been six years and nothing has been done. Assets should have been seized and funneled back into the national debt and economy with criminal action taken. Our society is now faced with a ticking time-bomb as the smaller banks have now become the bigger banks. Will we be able to survive the next explosion? The Wrap-up In a democratic society the majority determines the set of values that govern that society. On one hand these values must be maintained by the citizens. On the other hand when legality takes precedence over morality, we need to reconsider what is important. Change cannot happen if we are not willing to look deep inside ourselves and re-evaluate who we are and who we want to be. Julius Caesar said, The fault lies not in the stars, but in us.