In this commentary, AIMS Board Chair John Risley discusses why government at all levels has been acting irresponsibly concerning the economy – and how they can fix it by demonstrating leadership. In A Disgrace, Risley explains that what astounds him is the lack of leadership currently on display by most of the western world’s political elite.
The retribution game arising out of the financial crisis brought on by the collapse of the U.S. housing market has to some degree justifiably focused on Wall Street. But what about the politicians who urged on Fannie and Freddie to aid and abet the American dream of home ownership, apparently without regard to the ability to actually pay? And what about the regulators who witnessed the explosive growth of AAA rated mortgage backed securities?
This is the same thing the market has just “noticed” in Europe. It is irresponsible behaviour practiced not just by Wall Street banks but by governments at all levels. And it’s a big problem. But it’s a solvable problem. Leadership got us into the problem and leadership will get us out of it. Hopefully. Honesty and transparency are great places to start.
Click here to read the full commentary.