Moral hazard, and panic

San Francisco Chronicle ^ | 9/21/7 | Debra J. Saunders

[SmithL]

This week, thousands of anxious Britons spent days queuing in front of bank branches to withdraw their savings from Northern Rock, a British mortgage lender caught up in a credit crunch. Many emptied their accounts, even after British Chancellor Alistair Darling announced that the government would guarantee existing savings accounts in an attempt to stop the panic.

Whom did movers in U.K. financial circles blame for the bank panic? They blamed Northern Rock for high-risk investment practices. They blamed Darling for letting the situation deteriorate to the extent that it did. Then they blamed Darling for promising that the government would guarantee investors' accounts beyond what British law had guaranteed - 90 percent of savings of about $60,000, according to the Daily Telegraph.

And they blamed the United States.

Specifically, financial gurus cited America's subprime mortgage crisis.

On the one hand, Our Betters in Europe are quick to blame their shortcomings on this country. I don't recall many Western European articles acknowledging America's role in European security or prosperity.

[EagleUSA]

Specifically, financial gurus cited America’s subprime mortgage crisis.
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Someone should explain to these socialist fools that their attempt to put this on America is totally transparent. You can always spot them — THEY never do anything wrong...someone else is ALWAYS to blame.

[thundrey]

Want some fish to go with that chip on your shoulders? I’m no economic expert, but the sub-prime mortgage crisis certainly seems to be a factor in this. This isn’t just mindless anti-americanism, it is a fact that things like this have a worldwide significance in a global economy.....