Thursday, April 2, 2009
Mike Norman on Cavuto talking about who's to blame
My main point was that the culture of speculation, while perhaps not invented in the United States, was taken to heights never before seen in history and we "exported" that around the world. While other countries were educating their kids to become engineers, scientists, doctors and mathematicians, we were cranking out MBA's to go work at Wall Street investment banks to flip arcane financial instruments that did nothing to add value to the real economy. Those privlieged few earned enormous compensation while most of the rest of the working population saw their incomes stagnate.
The U.S. has a lot to be proud of and the world owes us a debt of gratitude for many things, but the era of unbridled speculation that was pushed so zealously by our policymakers for so long (Rubin, Greenspan et al) has to stop. The brain power that went into creating the products and markets that formed this "casino economy" must now be refocused into delivering the more productive inventions and innovations that will form the foundation of stable, long-term growth and prosperity.