“Sometimes you have to make the tough decisions. If you think this has to be done, you have my blessing. But someday you guys are going to need to tell me how we ended up with a system like this. I know this is not the time to test them and put them through failure, but we’re not doing something right if we’re stuck with these miserable choices.”
– George W. Bush on September 16, 2008
That’s from an upcoming 19,000 word piece in The New Yorker entitled, “A Reporter at Large — Eight Days: The battle to save the American financial system piece.” It will be a must read for anybody interested in seeing how things went so horrible, terribly wrong, but as the Bush quote hints at…deregulation is why we were stuck with miserable choices.
If this raises your conservative/libertarian hackles, well, tough. It’s time to accept the fact that markets are not self regulating and never can be due to the very nature of capitalism itself.
Why do I bring this up? Well, this fall Obama is set to propose much tougher regulations on banking and the marketplace. So I want everybody to remember why we find ourselves in the economic situation we’re in and why we need to never let it happen again.