What's going on with this?
Nothing to do with Bloomberg. It's Paulson and Geitner's legacy.
It is everyone's fault. Just as the RE bubble got out of hand due to Washington, it was Bloomberg's fault for not implementing greater oversight at the height of the building boom (e.g., by having too few building inspectors, as the crane collapse incident showed; by allowing developers to raze older structures willy nilly rather than have automatic scrutiny for, say, buildings over 75 years old -- now we've lost one of the city's oldest buildings at 213 Pearl; for nominating Tierney -- twice, etc., etc.). I am generally supportive of Bloomberg, but he wasn't "minding the store" when the real estate frenzy was at its peak, just as the White House, Treasury, SEC, etc., etc., weren't minding the store when CDOs and default swaps were at the peak of their frenzy.
There was a huge mess of unaccountability, and rather than either deny people were responsible or refuse to accept that they can change, we should pressure Bloomberg to change his ways (just as the SEC, Treasury and co. are being pressured to change theirs) now that the party's over and their errors are revealed.
No. If Lehman was saved this building would still have financing.
Not saving Lehman was quite possibly the most impactful economic policy blunder of the modern era. A US savings of 85 billion that has triggered upwards of 10 trillion (and counting) in worldwide losses, and more importantly, was the defining move that removed stability of, and faith in, the global banking system.
This decision rests with Paulson and Geithner. Maybe they'll have the balls someday to admit their mistake.
Don't let their superiors off so easy -- the boss had the ultmate responsibility (unless you don't believe that there is a head Buck Stopper).
In the case of Paulson: Bush.
In the case of Geithner: ?? (Bernanke?)
Which is true. But those guys sure got people riled up and scared. Perhaps there would have been a huge implosion with domino-ing banks falling willy nilly. Or perhaps hardly nothing would have changed. No one knows.
They saved us from the boogeyman.
*This also seems to be the Bush / 43 motto.
This is not right forum for a lengthy discussion on this topic so I will respect the house rules and stop here.
This complete a**. First he cries b/c his credit facility went bankrupt and he can no longer borrow money (meanwhile many and many are out millions of dollars that won't ever be paid back) and now it turns out that he's a deadbeat and actually owes the bank money.