Democrats and Republicans mixed the Perfect Economic Storm.  A big part of the collapse of Wall Street should rightly be put at the feet of the Wall Street Bankers.  These are the ‘experts’ who were charged with managing the bank’s resources.  Our government sanctioned lunacy in the banking industry – but that does not excuse the bank Executive.  With that said, let’s look at the dangerous mix of legislative tomfoolery.

The Democrats are always in a toot to outperform the previous bunch with support for the less fortunate.  The Republicans are always in a toot to grant opportunities to business.  Thes folks bonded about fifteen years ago to create the economic mess we have today.

We have belabored the point of the Republicans removing regulations – allowing poor judgment in financial transactions.  What is the Role of the Democrats?  There is an obvious answer – the Democrats wanted to help people fulfill the American Dream of home ownership.  A surface evaluation – the talking points of political campaigns – suggest nobility in their cause.

We add together two self serving political agendas and we find the stage set for today’s crisis.  The Democrats loosened the rules of incurring debt – granting a loan to someone with no credit, or even poor credit, was made into a noble gesture.  The back room deals in the bowels of Congress brokered easy credit with few regulations – the recipe for disaster.

Everyone owns some of this:  The Democrats mindless zeal for noble causes, The Republicans zeal for deregulation, The CEO’s of Investment Banks in a quest for profit, and people who entered into contracts they did not understand.  Strip mall mortgage companies sprang up across the nation, right next door to the Pay Day Loan companies, and around the corner from the new Casino.

The Representatives and Senators in Congress were so enamored with their causes that they forgot to watch the store.  The compromises cost too much – but zeal and enthusiasm were more powerful than reason and common sense.

No one won.  Everyone lost.  Do we do a service to someone by loading them up with debt they cannot pay?  The solution was to eliminate or minimize Usury Laws – those government oversights designed to prevent loan sharking.  Thus the people who could not make the monthly payments could go to the Payday Loan shop to cover their debts.  When people finally reach the end of their Payday credit they reach in desperation to the Casino.  What do they have to lose – all is already lost?  They chase their loses.

Ultimately we find ourselves in a position of the Government bailing out all of the corruption.  What this really means is that we spread the loses across the entire population.  This writer does not have debt.  We drive an old truck and enjoy a frugal and responsible life.  The government, in order to prevent a total meltdown of the economy, has granted us a $2,300 share of other people’s irresponsibility.

We accept this.  We understand the consequences of a major recession or even a depression.  We will take our $2,300 share, and will demand our representatives in government be more accountable.

What else is one to do?