Wall Street shoulders part of the blame here because it was their prospecting that caused the recession in the first place. Other parts of the debate, like how to handle entitlement programs or the bloated defense budget, have been part of the problem for a long time. But Wall Street is a huge driving force on the decisions that politicians make because they lobby for or against every single provision based on whether it meets their interests.
The fiscal cliff crisis has absolutely nothing to do with Wall Street. Wall street has no or little control over what government does, or does not do. Wall Street is not the ones that is not willing to compromise on the rise in taxes. It is mostly the Republicans fault for not willing to bend on raising taxes.
The question at hand is whether Wall Street greed led to our current ‘fiscal cliff’ crisis. The answer to that is a resounding ‘NO’. The issue that led us to this point is out of control government spending. As a homeowner and bill payer, each month I maintain a checkbook register to ensure that we do not spend more money than we have. Yet, politicians from both parties have spent with reckless abandonment. It has been known for years that Social Security and Medicare would be a huge drain on the economy and income raised from taxes. With this in mind, no party has even attempted to change or fix the problem. Instead, they kick the can down the road for another group of politicians to worry about. Wall Street cannot control the fact that the federal government spends millions of dollars to build an outhouse in a national park. Wall Street cannot control politicians’ spending money on pet projects in their districts or states. The crisis lays squarely at the feet of our Congress and our President.
As far as I understand the fiscal cliff crisis it is not a crisis at all in the sense of being unexpected. It is a series of events that are set to take place at the beginning of next year that will have undesirable consequences, but they have been well known about in advance and the only crisis is that our people in Washington cannot agree on how to remedy a situation that they created to begin with. If by Wall Street greed you mean the greed of the wealthy then it seems ultimately the answer is yes, because the central point of disagreement is whether or not to continue the low tax rates they have enjoyed for about the last ten years. It is far more complex than just that, because it is not those tax payers who are engaged in the fiscal cliff discussions, but I am sure they hold vast influence over the people who are.