May 26, 2011
I’m writing because my family and I were affected by the economic collapse of 2008, and we don’t want it to happen again.
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I’m writing because the economic meltdown of 2008 was predictable. Many of the same principles were in action as the catalyst to the Great Depression. Government simply looked the "other way" while Wall Street invented get-rich-quick schemes and took it's profits at the front end, pushing the risk down the line. Artificial bubbles will have their balancing depressions. Our problem here is that government is complicit in it's lack of regulating these schemes. At one time, regulations were in place to ensure that another Great Depression was not created. But those preventative regulations were dismissed. A lot of intention went into this economic collapse. Certain parties made enormous financial gain, although Americans in general suffered financial losses and hardship. This cycle will repeat itself as long as government is a cohort in this white collar crime.
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Wall Street greed and outrageous pay practices were a major cause of the collapse. One way to change the incentives so they don’t collapse our economy again would be to delay the bonuses for three, five or more years. That way, we’ll know if the loans they made in year one remain good. In the bad days, bankers paid themselves on the volume of loans (mortgages) they generated, not on their quality.
PERHAPS YOU SHOULD STOP HAVING LOBBYISTS WRITE LEGISLATION. No wonder there's zero regulation of Wall Street and the Finance Industry!
Thank you for considering my comment,
J. L. Cone
Ruskin, FL