Sunday, October 9, 2011
Too Big To Fail Is No Way To Run An Economy
The capital markets have an important role to play in our economy. The movement of capital from individuals and institutions to corporations has permitted our economy to grow. Most of what the people on Wall Street do aids in building the nation and growing the economy. The problems begin when ethics are placed aside and greed for huge profits takes over. There were a number of regulations that were relaxed over the years by the congress that gave rise to the financial crisis of 2007-08. People with the responsibility for doing their job correctly were told that the profitability of their corporation came before doing the right thing. Regulations are needed. The laws that regulated the banks and the capital markets worked for several generations before they were removed or watered down. Greed is something that will always be a problem. Regulations, enforcement, accountability and transparency help to keep the game on the up and up. The capital markets provide a valuable service to the country when they are run on the up and up just like anything else that is run correctly can help grow the economy. The economy grew under the Glass-Steagall Act for generations, and it needs to be put in place again. Too big to fail is no way to run our economy.