Regulation and Capitalism

Now that it appears the economy may be leveling off, a review of the why and what to do to prevent this again, should be looked at. People from the Looney Left say, TOTAL REGULATION! People from the Rabid Right say, let the economy correct on it's own. CAPITALISM REGULATED LEADS TO COMMUNISM! I believe somewhere in the middle of these two ludicrous actions is where we belong.

Playing with rules is not something new. In every aspect of our lives boundaries, whether natural or not, appear to keep us focused and on a straight and narrow path in our Society. Why should Capitalism, in general, be any different? If you listen to the Rabid Right Wing talk Shows, they say how stupid people were to sign these contracts or mortgages and they deserve to loose their shirts. Now, after raising a family in this economy, I would like to defend the Average Joe from this accusation.

Everyone believes in the American Dream. Part of the dream is to live in a home you own. There is nothing more permanent or secure than having a place to call strictly your own. Many of the sub prime mortgages given out were a chance for families to be able to do just that. Were these individuals stupid like the Rabid Right would like you to believe? I do not think so. Though, these people have to take responsibility for the debt they committed to. If I had a chance to purchase a home, I would have if I thought there was a good chance I could refinance before the loan rolled over. That was the thought I gave it. I did not pursue a mortgage because I was not sure I would improve enough on my credit rating to make that refinance possible. I’m sure many others thought the same way. However, it is obvious people took the risk. Now, maybe mistakes in judgment by these individuals were made. Maybe the Loans were done with some predatory misleading. There is obviously enough blame to go around. How could all of this been avoided? If rules were in place to limit such loans or, such loans if allowed, would be sufficiently supported financially in case of failure. In other words, REGULATION!

If anyone has seen the movie “Wall Street”, they would remember the “Greed is Good Speech”, the Michael Douglas’ character gave. But, even in that speech, total deregulation or lack of control was not promoted. I believe the “True Capitalist” is not afraid of playing by set rules. In fact, a True Capitalist will embrace the rules and use them to an advantage. Because, a True Businessman or Woman, will know that playing by the rules would be a protection from the predators who would try to disgrace Capitalism through thievery and deceit.

So, are people fleeing Wall Street? Only the thieves and dishonest business people. I believe the true and honest business people will remain and be joined by a new crop of honest individuals who will restore Wall Street and Main Street to a viable partnership.

That’s my view.