Economic Failure Certain Without Regulations
In 1792 President George Washington presided over an economic crisis that brought America to its knees. For the next 140 years the U.S. economy controlled by great wealth went into one economic crisis after another every fifteen or so years. After crashes, recessions and financial debacles, including The Great Depression, the Roosevelt Administration took three great steps in preventing constant economic failure. The Glass-Steagall Act separating Wall Street from Main Street, the FDIC guaranteed insurance for bank deposits, and the Securities Exchange Act to prevent cheating. For the next 50 years the regulated economy skyrocketed, yet there was not one major economic crisis. In 1980 Republicans began deleting regulations claiming they slowed growth. Soon after came the great Savings and Loan debacle with billions lost in savings and investments. The warning was ignored and in the 1990s hedge funds squandered billions in capital investments. That warning was also ignored and in early 2000, Enron’s unregulated bookkeeping sent the energy prices soaring. It was clear by 2005 with the mortgage balloon saving the economy was already too late. The Great Recession was upon us. Four years later the economy is still floundering due to Republican for no regulations. When the market goes up the rich get richer. When the market goes down, pensions are lost, jobs are scarce and poorly paid, and investors lose money. Lack of regulations and high flyers flourish leaving common people without recourse. All games have rules. Why should business get away without rules when we have to follow them? This is my money. I want the financial system restricted as to what they can do with my money. It’s ok to get rich, but play by the rules and don’t cheat. I trust you, but I read the fine print.
Richard Dorsey, Hacienda Heights, CA