He also quotes credible sources such as Ranu Dayal, senior partner at the world’s leading advisor on business structure, the Boston Consulting Group – ‘There is a deep question of legitimacy that banks need to face up to’. However one of his sources is credited as being a Professor but in fact he is only an Associate Professor, a position which still has very high credibility, but of less than the one quoted by Gapper. Also, Gapper does not give any conflicting perspective, the only views you read are the ones that agree with him.
This weakens his argument as he has not considered alternative perspectives. After analysing both articles, my view is still similar to Gapper and I already thought that it was fair to blame investment bankers for the 2007 downturn. Whilst I note that they dealt with a lot of money and it was not handled in a correct manner by anybody who had access to it (including the Federal Reserve), I also can see where Wang‘s concept bases its format.
His perspective of social inequalities is only US based but I can understand his assumptions that expansion was high and the consequence of this led to social inequalities. This has happened elsewhere, such as during the Chinese Mao era of 1949-1976, in particular during the Great Leap Forward (1958-61). Gapper’s perspective has persuaded me that he is of more expertise than Wang as he is so influential in finance media. His analysis was concise and constructive.
He quoted many important figures in his article including an executive director of the Bank of England; Chairman of the Financial Services Authority; and a Professor of Entrepreneurship at MIT Sloan school. His arguments are quite strong however he does go a stage of a circular argument where he should be concluding his article. His evidence did strengthen my perspective however Wang’s comments led me to read more into financial theories, especially of those surrounding the 1929 Great Depression.
He managed to intrigue me into the history of the financial world and I do believe that 1929 and 2007 are very similar in the cause, but the cause is the banking industry, not the housing market. Wang has only commented on the United States but his views may apply worldwide however his lack of evidence weakens his perspective as it is too narrow. My final conclusion is that investment bankers were the major, not the only, cause of the global downturn which started in 2007, and we have to share the blame for the current economical state.