Deregulation: A Misconception

There has been a lot of talk about deregulation being the cause of wall street and the financial markets failure and even of the economy in general.  For sure, deregulation has played a part in past failures such as the meltdown of the S&L industry in the 80's which was covered in a past politidose article.  That failure cost the tax payers over $150 Billion which was never paid back. 

 

The present problem with the present meltdown in the economy and wall street is a result of the failure of the regulators to regulate, because that was Bush's policies.  The government does not have to change the laws to deregulate, all it has to do is let industry have a free hand.  The results are the same.  That was Bush's ideology and a long standing ideology of conservatives in general, even though it has proved to be a failure because industry will not regulate itself.

 

Our founding fathers knew how important it was for government to have checks and balances and accountability.  If they were alive today they would be astonished to see the principals they worked for and established be trampled on.