As I said in an earlier post we are seeing the tip of the iceberg in terms of the financial crisis. I was heartened to hear that congress was working in bipartisan fashion to solve this problem. Obviously, the Bush administrations plan of no oversight is not a good idea, but we do need to do something about this impending disaster.
But my panic light went on today when talks broke down after McCain showed up, not that he was solely responsible, but he did use the crisis to try to look like a hero when he clearly doesn’t have any answers or even knowledge of what’s going on. As I said in an earlier post McCain would plunge this country and the world into the worst depression ever (based on his aspects to the Dow Jones, and of course now that the world is interlinked all the markets would crash) and this couldn’t be more illuminated in just his slightest touch of involvement unraveling the talks. According to reports coming out McCain had nothing to say at the meeting, but obviously tried to use it politically.
And by the way the Republicans have caused this mess — a free market without rules isn’t free. Deregulation is what caused this. Deregulation or no regulation is China’s case has doesn’t work. We put regulations in place for formula after babies started dying when formula companies watered milk down. Babies died of malnutrition in this country, the US. This is exactly what happened in China just recently, but instead of water they used melamine to try to falsely boost the protein levels in tests.
Regulations are laws — like us the normal everyday citizens have to abide by, such as you can’t kill, steal or rape someone. No regulation is akin to abolishing punishment for criminals. Companies policing themselves has never worked, because it is not in their best interest, as we are seeing in this banking debacle.
So all of you who think the market will correct itself, that deregulation is good for the economy — here’s the result: global DEPRESSION! It may have worked in the short term for companys to be able to gobble each other up. We’ve seen the melt down of the music industry partially from this cannibalistic approach. That’s a whole other story and another article if anyone is interested.
But its safe to say cutting off all the arteries to your heart will eventually kill you.