I think human nature is dynamic, both on an individual and a collective basis. I think human nature is expressed — takes shape — collectively as culture. So, I’m thinking of this analogy:

“But for the financial instruments we wouldn’t be in the mess we’re in now” is the equivalent of saying “But for the box opener used to slit his wrists, Rene-Thierry Magon de la Villehuchet wouldn’t be dead.” In the latter case it is obvious that Villehuchet has to take more blame for the deed than the instrument he used to commit the deed. If that makes sense, why wouldn’t it be just as obvious to say that in the former case, the “we” who are in the mess should take the blame for the mess more than the financial instruments used to get us there?

Thanks for the comment.

Creative securities, like CMOs and CDOs, were instruments that worked off the issuance of more mortgages: to almost anyone. This is less a “cultural phenomenon” than a societal manipulation into a major ponzi scheme. Working people discovered that Freddie Mac, Fannie Mae or any bank would issue a loan for that dream home. Issuing more mortgages, Wall Street could bundle up and repackage more instruments, (oftentimes reselling them to the originating bank) and hence reaping enormous trading profits. To borrow from Mark Felt: Follow the money.

It’s the American dream to own a house. When houses are marketed to Americans for no money down, irregardless of savings and for amounts not in line with income, who is creating this culture? Institutions. Institutions Americans respect and revere such as banks, credit agencies, the government, etc. Without any leadership, our culture shifted away from its values and common sense and was sold on bigger and better, which became an American right. Only it didn’t afford us life, liberty and the pursuit of happiness, it put us in debt. The decision makers that marketed and sold these creative securities, making hundred of millions of dollars for themselves, and the government, who didn’t regulate, created a ponzi culture that ultimately caught up with all of us. Alan Greenspan admitted himself he thought these bankers would self regulate. Creativity in certain industries i.e. the tech industry, medical, entertainment creates jobs and economies, millions are made, millions are employed. Wall Street is not a place to be creative, when it is, only Wall Street benefits. Now that’s less cultural phenomenon but plain old human nature.