Free markets, yeah, yeah, yeah. That’s been the mantra in America ever since Reagan’s handlers rode out of the wild west with the theme that goverment is bad and regulation is government at its worst. So free markets, neo-Darwinism, have reigned supreme. From airlines to television to energy companies we’ve had de-regulation. Read: open the gates for greed and innovation. Not all change and corporate freedom is bad, but for every brilliant CEO there’s an Enron, for every risk there’s a taker, for every loop there’ll be a hole, for every share-holder value speech there’s a downside for the public.
Right now we’re seeing one of the worst financial crises in America since Hoover’s time. That’s Herbie, not J, Edgar who wisely kept his digits and other protuberances out of the country’s economy. Now those free marketeers, a delightful cross between buccaneers and racketeers, are asking for…get this: federal bail-out. So it’s the Federal Reserve, and now, the White House to the rescue. Guess maybe laissez-faire has its limits? Freedom is OK as long as the teenager can drive dad’s car all over the place, but if he gets stopped for speeding. Guess who gets the call, dad…or in this case, the same Uncle Sam all those high finance smarties love to shun, diss and avoid.
I love innovation and invention as much as the next guy, but when the innovation’s a new kind of “equity” to be traded in the billions of dollars, suckering in individuals, towns in Norway and huge corporations, shouldn’t somebody with no skin in the game be looking it over? Of course, that would presume there was a single competent financial regulator in power in the George W administration, which might be like betting on reincarnation. And even if there were such a person what chance anybody in W’s inner circle would listen to any caution that might curtail corporate profits?
Is there an economics prize we can give to geniuses who invented the risk-manipulation scheme that produced mortgages almost certain to tank? Is there a reality TV show here somewhere to take our mind off the realty reality?
