Decision Points

When the market stops following the rules, who is truly responsible for the collapse?

I was furious the situation had reached this point. A relatively small group of people—many on Wall Street, some not—had gambled that the housing market would keep booming forever. It didn’t. In a normal environment, the free market would render its judgment and they could fail.

The moment a personal insult becomes a defining moment of your entire public life.

Kanye West told a prime-time T.V. audience, "George Bush doesn't care about black people." Jesse Jackson later compared the New Orleans Convention Center to the "hull of a slave ship". A member of the Congressional Black Caucus claimed that if the storm victims had been "white, middle-class Americans" they would have received more help. Five years later, I can barely write those words without feeling disgusted. I am deeply insulted by the suggestion that we allowed American citizens to suffer because they were black. As I told the press at the time, "The storm didn't discriminate, and neither will we. When those coast guard choppers, many of whom were first on the scene, were pulling people off roofs, they didn't check the color of a person's skin."

When the system fails, the calculus of fairness fundamentally changes.

But this was not a normal environment. The market had ceased to function. And as Ben had explained, the consequences of inaction would be catastrophic. As unfair as it was to use the American people’s money to prevent a collapse for which they weren’t responsible, it would be even more unfair to do nothing and leave them to suffer the consequences.