FDR said, “If, in accord with principle, we must restrict the operations of the speculator, the manipulator, even the financier, I believe we must accept the restriction as needful not to hamper individualism but to protect it…The government should assume the function of economic regulation only as a last resort, to be tried only when private initiative, inspired by high responsibility, with such assistance and balance as government can give, has finally failed. As yet there has been no final failure, because there has been no attempt; and I decline to assume that this nation is unable to meet this situation.”
My personal belief is the lack of regulation of credit default swaps has been the main catalyst of this economic crisis. Bundling sub-prime mortgages to investors and selling them insurance against defaults without enough financial backing when defaults occur is unconscionable. I blame the problem on the greed of Wall Street and the lack of federal regulation. The Feds knew the problem and chose not to fix it. And now many of us who had nothing to do with causing the problem are having to fix it. I guess this is the American way to be there to assist, but there are lessons to be learned. Be careful who we elect and if they are too in bed with Wall Street, we better beware. I proudly support Barak Obama for President. I believe he will better represent all classes of people and that he better understands the economy.