Finance is not easily understood

The number of people who really understand the intricacies of world financial markets are few, so there is ample opportunity for wild prognostications.

Insufficient regulation has been widely proclaimed by Democrats as a cause for our “meltdown.” There may be some truth to that, particularly when applied to Fannie Mae and Freddie Mac, which was the “trigger.” Accepting that premise, the blame has to be placed with the Democrats, who resisted efforts to restrain their excessively lax lending policies as long as five years ago (FM and FM made large donations to Democrats – just a coincidence?).

Since the financial turmoil is worldwide it is reasonable to accept that many factors are/were involved. It remains to be seen how effective the programs (in many countries) which have been put in place will be in resolving the current dilemma.

The $700 billion bailout program (that Congressman Issa opposed) was contrary to free market principles. The Wall Street Journal took the editorial position that it was necessary even though they were not pleased with the anti-free market aspect.

We all need to hope that if Obama is elected he will not follow through with his anti-free trade and higher tax policies. Both would exacerbate our present situation. A repeat of the Great Depression, anyone?

Glen Holzhausen