Reader wrong on seeds of trouble

I couldn't read your recent Fence Post... "GOP deregulation led to greedy end," without trying to provide some perspective and reality to the misinformed author.

While it is true that the wizards on Wall Street have continued to create complex financial instruments that provide risks, rewards and leverage beyond traditional measure and regulation, it is also true that the institutions and individuals who actually invest in these securities have done so based on their own decisions and financial goals. Winning and losing is all part of the game. They made their own decision.

Unfortunately, going all the way back to the Jimmy Carter era and that Democratically controlled Congress ... politicians with the worthy goal of providing homeownership to poor people and minorities passed regulations that required banks to lend money under standards that were not consistent with common sense or "good lending standards."

Congress continued this folly, building huge governmental organizations, (i.e. Fannie Mae, and Freddie Mac) to handle, package, and pass these substandard mortgages on to Wall Street and ultimately ... Main Street. It was, in fact, "wrongheaded" regulations and nearsighted liberal politicians passing these banking regulations that set the stage for the fiasco we are all paying for today. As usual, the politicians, both GOP and Democrats, were blind to the unintended consequences of lending too much money to too many people who can't pay it back. Now, when the "stuff is hitting the fan" those very same politicians, (i.e. Barney Frank and Christopher Dodd) position themselves as the heroes of the day. What hypocrisy! This voter will remember who caused this mess on election day and vote. accordingly.

Jim Leyden

Elgin