Bank/Wall Street regulation

The only people who profit from an unregulated financial system are the people who run the system.  As a comparison let’s use our favorite shade tree mechanic as an example.  Most people know nothing about the cars they drive beyond what they can see from behind the wheel.  As a result when there is a problem we must depend on the mechanic to be honest.  Does that always work?  No, that’s why we have the consumer protection agency.  Regulators are always looking over the shoulder of manufacturers to make sure they are not taking advantage of the consumer.

Financial oversight is a much more difficult problem because the people who would appoint regulators (elected officials) are in the pockets financially speaking of the wall street bankers.

Deregulation of the banking industry was tantamount to giving the highway patrol their walking papers and then hoping that everyone would behave like full grown adults on the highway.

Like the people who are marching in the streets as I write this you can tell that I am very upset about this.  We are going to look back at the Greenspan era as some of the darkest days in our history.  More to come on this in the future when I learn more about it myself.

 

 

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