How the Government Killed the Economy

Today, how the government killed the economy? Hi and welcome to Tonka Beans, I'm Zina Spezakis. Everybody’s pointing fingers at who’s responsible for the sagging economy but they're all wagging their fingers at the wrong people. You’ll actually be shocked who’s partially responsible and I’ll tell you right now, this wasn’t covered in mainstream media. It should have been- but you’re only going to get it here at tonkabeans.com. In large part, the seeds of this mess were planted in a brief meeting back on April 28, 2004. On that Sunday afternoon in Washington, D.C., the SCC met with the five biggest investment banks to hear their pleas. They pleaded to have certain regulations relaxed on them. Why, you ask? Well, it was so they could compete with the lower risks standards in the European market. In loosening the rules for theses investment banks, the SCC, in their infinite wisdom also decided to rely on the firm’s own computer models for determining how risky they became. Shall they essentially outsourced the job of monitoring the riskiness of these banks to the banks themselves? They only assigned seven people to oversee these banks which in 2007 controlled over $4 trillion. Wow! These government employees must have been pretty smart. Basically, the SCC let the prisoners run the prism and then fired all the guards that were there to keep them from escaping and bothering the rest of us. I don’t know about you but I call that flat out stupidity. And if that’s not enough, they actually ignored anyone who tried to explain to them what a bad idea this was. So who was that is sparsely attended little covered meeting? It was the five investment banks that are incidentally all now defunct as investment banks. Berry Spurns was forced into a gunshot Mara vu with JP Morgan. Merrill Lynch was absorbed by Bank of America. Lyman Brothers one out of business insults together and both Goldman Sachs and Morgan Stanley were forced to become commercial banks. Oh, and by the way, the head of Goldman Sachs at that time, Pank Pulsen, would go on to become the treasury secretary under George Bush. Nothing like having the fox wash the hand house on. So when the government losing the standards for all these power players and stop monitoring them, what happened? I'm sure you’re aware of the financial crisis that ensued. The bail out of 700 billion costs each American over $2300.00 so the next time your local senator or governor talks about those greedy investment bankers who put us in this mess, maybe they should take a cold hard look in the mirror. The government just wasn’t minding the store. Now, let me be clear. I'm all for free markets and capitalism. It’s just the only game in town. So just because two little government oversight me of contributed to this crisis, too much of it is bad for the economy and we want to hear from you. So give us your thoughts at tonka beans.com. I'm Zina Spezakis and thanks for watching.