Harold Meyerson blames banks and big business for the collapse of our economy, especially for the bankruptcies of California cities hit hard by the bursting of the housing bubble.
Rather, the federal government encouraged the irresponsible lending to increase homeownership. Banks would never have been successful in making so many subprime loans if Freddie Mac and Fannie Mae weren't buying them. Wall Street also bought these toxic loans and rated them as AAA securities.
Meyerson deflects the responsibility from the civic leaders who manage the budgets.
Meyerson writes that big banks, not public employee unions, are to blame for city bankruptcies.
According to CNN'sFareed Zakaria, when now-bankrupt San Bernardino went to its unions for concessions on a contract that allowed public-safety employees to retire at age 50 with 90% pay, the unions agreed only to increase the retirement age to 55 for new employees at 90% pay. Now both the city and the unions are headed for bankruptcy court, where no one wins.