Hindsight!

One of the things, and there are several, that continually gnaws on me about our politicians, is their unique ability to overlook the root of the problem when seeking a solution. Example: The proposed financial reform legislation package…..

“We need to regulate Wall Street,” is the cry heard from Washington. “The taxpayer shouldn’t have to bail out financial institutions insuring their ability to take unacceptable risks.” Very noble, yet pompous, arrogant, and asinine, considering the process that led to their financial distress. The vehicle that carried Wall Street to the financial breakdown was provided by Washington’s meddling in the first place. Wall Street traded risky mortgage backed securities that were created by Fannie Mae and Freddie Mac., (both government sponsored entities). This was in a response to legislation enacted by Washington to allow “risky” homeowners to receive financing. Those “risky” mortgages were bundled up and sold on the exchange, enter Washington again. Mark to market legislation enacted by Washington said the value of a good or service is only relevant to what it’s value is on the open market. You can’t create a value. Seeing these mortgage packages were extremely risky and not properly secured by equity, because they were lending 100 plus percent of an inflated false value, they became basically worthless. Hence the financial crisis, as the market was trading heavily in these investment opportunities.

So the genius in Washington provided the gun, loaded it, pointed it at their head, counseled them on pulling the trigger, then has the nerve to complain when they committed financial suicide. Now those “fat cats” on Wall Street are the villains, and need to be “controlled,” through the passage of more of Washington’s incredibly inept legislation.

Has anyone else wondered why so many have left high ranking positions in Goldman Sachs to become Washington’s financial advisors? As CEO’s and the like their salaries had to be 7--8-9 figures, yet they opt for appointments that pay less than $180k. Sort of eludes to the fox watching the hen house! Point to make here is …Where were these financial guru’s when Bernie Madoff was ripping off the public? He ran one of the biggest ponzi schemes of all time right under their nose. Or was it?

We have laws in place to prosecute fraud, let’s just use those. Maybe if the Attorney General wasn’t so busy with bringing terrorists to trial in the USA, he could actually do his job and protect the public. If fraud is proven the perpetrators need to be punished harshly as a message to those who might consider the risk. Enacting legislation is simply shutting the barn door after the horses got out and using the same latch we had available in the first place!

God Bless!
Capt. Bill