The consequences of little regulation

Welcome to the far side of deregulation. Reagan's revolution run amok.

Or maybe you believe that the subprime crisis is a result of mere errors in judgment?

Not really. This crisis is the predicable result of the cult of free-market economics given full reign. It is the predictable result of Bush economics, of John Stossel economics.

Only now, government is not the problem, it is the only solution. And all of last year's deregulation boosters now want that government solution.

Of course, that solution is to spread the losses caused by 1) the predictable failure of borrowers who were sold loan products beyond their means, and 2) the "securitization" of these worthless loans by people too smart not to have known what the inevitable result of this would be.

The "solution" offered is that these losses be shouldered by all citizens, not just the financial firms and investors who have been caught holding the securitized hot potato.

We all take a hit on this because under President Bush, our government got out of the difficult business of regulation. He had a better idea: the same idea that led to the savings and loan crisis.

No rules, just financial survival of the financially fittest.

The current meltdown is just another step in the inexorable process of a fully deregulated economy --moving money from those without enough of it to those with more than enough of it.

Oh, and that "ownership society" our president was so hot on? Well, for most people, it looks like that will have to wait.

Alfred Y. Kirkland Jr.

Elgin