You Can't Always Get What You Want

In the years following World War II, as the result of the pre-war New Deal programs. This led to a culture of protectionism, less personal responsibility and, thanks to the the add-on Great Society programs of the 1960s, a society built on regulation and entitlement. During the 1970s, the U.S. economy and socialized economies around the world (see Great Britain) failed under the weight of heavy regulations and union power. It wasn't until Ronald Reagan freed the U.S. economy from the chains of government and labor unions in the 1980s. The future looked bright for America and business and financial innovators. This was the case for almost 25 years, until hubris and greed ended the golden age of the American economy.

Everyone who knows me can attest to my free market ideology. Low taxes, less government and free decision making gives people and businesses the incentive to reach for the stars. It creates an environment in which new products, services and efficient business practices improves the quality of life and prosperity for all, except those who wish to show up at work and collect a paycheck.

However, those who benefited from an era of deregulation and innovation took advantage to the situation to line their pockets and abuse the system. Now their misdeeds threatens to send us back to the stone age of 1946 - 1981. There have been cheers from the left that, finally, the worker will triumph again. Think again Trotskyites. In the era of a global economy (and there is no turning back), jobs will go where business can be done most efficiently, bit in terms of cost and efficiency.

What needs to be done is for those responsible for creating this financial mess should be held accountable. This is not done by letting banks fail, but by removing those executives responsible for this crisis from power. Don't stop there. Those who created these vehicles, traded them, marketed them and rated these vehicles (hear that Moody's and S&P analysts) should be banned from the business (Wall Street), permanently. Their bending the models to make them give the desired solution and the mismarketing of these pools of glow-in-the-dark collateral brought us where we are today.

Mortgage brokers and loan officers should also be pursued for potential fraud. Knowledge-based licensing should be required and a fiduciary responsibility should imposed on EVERYONE who sells, explains or recommends mortgage products.

If these reforms are not imposed, look for heavy regulation, high taxes, slow growth and housing projects in our future.