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Archive for November, 2011

 

For all the talk of Wall Street reform and consumer protections the problem of predatory lending has not been eliminated.

Subprime lending continues in the auto financing industry and elsewhere, and unlike conservatives’ criticism of the housing market there are no federal subsidies to finger. Policymakers have, indeed, caused the problem but for reasons other than what many of us have been led to believe. True, Freddie and Fannie Mae advocated for the dream of home ownership even as it floated out of Americans’ reach. However, this reality only begs the obvious but lesser asked question: Why is the American Dream drifting out of reach in the first place? And might the answer to this question reveal that the hollowing-out of the middle class bears a reciprocal relationship to market volatility?

 

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If the headline-grabbing Occupy Wall Street movement proves anything, it is that Americans are gravely concerned about the state of our union.

Just as the Tea Party was regarded with suspicion in their initial rallies to reduce government bloat, throngs of leaderless Occupy Wall Street protesters have been derided for their all-over-the-map set of gripes: Wall Street traders who have funneled investors’ money not into the real economy but speculative gambles that have led to questionable lending practices, volatile commodities pricing and taxpayer bailouts; a higher education system that has become a financial albatross to indebted students; legislative favors aimed at Big Business, and widespread unemployment even among the young and the educated.

Arguably, Occupy Wall Street is to Big Business and Banks what the Tea Party is to Big Government and Waste — two sides of the same coin. Both groups — which for the purpose of this discussion are defined as principled participants not to be confused with their salacious or lawless detractors — grasp a large chunk of the problem.

To cure what ails us, Americans must reach for broader and more inclusive views and bigger and bolder solutions.

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