ABC News: Recession Villains: Who Will Be Blamed Next?

ABC News: Recession Villains: Who Will Be Blamed Next?


Recession Villains: Who Will Be Blamed Next?
From Geithner, Liddy to Madoff -- Psychologist: It's Easier to Blame Individuals Than the Financial System
By MATT JAFFEWASHINGTON, March 24, 2009

With the economy mired in a 15-month-long recession, government bailout programs marred by fraud, executives at ailing banks collecting million-dollar bonuses, and investors irate about money lost to Ponzi schemes, there is plenty of blame to go around. And not a week seems to go by without the public picking a new person to point the finger at.

Clockwise from to left: financier Bernard Madoff arrives at Manhattan Federal court March 12, 2009,...
Clockwise from to left: financier Bernard Madoff arrives at Manhattan Federal court March 12, 2009, in New York City; AIG CEO Edward Liddy testifies before a congressional committee hearing March 18, 2009, at the Capitol in Washington, D.C.; television personality Jim Cramer interviews NASCAR drivers during the taping of CNBC's "Mad Money" May 23, 2008, at Lowe's Motor Speedway in Concord, N.C. (Getty Images)

"What happened is our sense of fairness and justice has been deeply offended and now we feel vengeful and vindictive," said Dan Ariely, author of "Predictably Irrational," a book that explores the causes of everyday behaviors.

Early this month it was Bernie Madoff, who schemed investors out of $65 billion. Two weeks ago it was Jim Cramer, the CNBC talk show host eviscerated by Comedy Central's Jon Stewart. Last week it was Edward Liddy, CEO of AIG, who dished out $165 million in bonuses to executives at the bailed-out insurance giant.

Read Full Article: http://abcnews.go.com/Business/Politics/story?id=7152326&page=1

***********************************************************************
This posting was made my Jim Jacobs, President & CEO of Jacobs Executive Advisors. Jim also serves as Leader of Jacobs Advisors' Insurance Practice.