You Can't Handle The Truth (Part II)

Another important factor in this financial collapse would be deregulation. After 8 years of staunch regulation laws passed by the Clinton administration, Bush (and a few key Republican Senators) spent his eight years stripping those regulations out. They separated commercial banks from wall street banks and pushed tremendous deregulation acts through congress. Their excuse is "free market."

The problem with the free market is that it derives itself from greed. Greed makes capitalism work, but too much greed with no watchers, makes for a very bad combination. Even the biggest economic mind of the last thirty years (Alan Greenspan) admitted that this collapse has revealed a huge flaw in the system.

And what happens when you have a market driven on greed and no regulation? In comes people like Angelo Mozilo (founder of Countrywide), Joe Cassano (founding member of AIG), Stan O'Neal (CEO of Merrill Lynch) with their hedge funds and CDOs. Not to mention other types of criminals like Bernard Madoff who are the few that will probably be prosecuted leaving the rest of them enjoying their millions while the rest of us suffer.

Eventually, things will get better, then worse, then better and so on. But because of first two factors I mentioned, this economy will never be like it used to be in the nineties. But we will be fine, at least until the next administration that believes in the "Free Market."