Unrestrained capitalism can’t be tolerated

Ray Harbert, Las Vegas

Wednesday, Oct. 29, 2008 | 2:05 a.m.

The issue this year is the meltdown of the nation’s economic system. Tomes are being written about the various causes, and each of them will be second-guessed. But I am sure an arm’s-length analysis will point to politics at the core of the problem.

If one steps back and takes a look at history, he can see the fingerprints of politics. Politics were first evident in the 1920s with the Teapot Dome scandal, followed soon after by the stock market crash of 1929 and President Hoover’s lack of action that led to the Great Depression.

In more modern times it was the debacle caused by the deregulation of the savings and loan industry. This was highlighted by the Keating Five scandal. It was not many years later that the collapse of Enron, with its loss of jobs, vanished pension and saving plans, and worthless stock, commanded the headlines of the day. The politicians again ignored the warning signs. Economic regulations were required to control unrestrained capitalism driven by greed.

Today it is the unregulated subprime mortgage market, derivatives, hedge funds and other ill-conceived ventures. All were led by the unsated greed of Wall Street.

We are now entering a downward economic spiral with unknown ramifications. No one today can say with certainty where it will end. But one thing is for sure: Many dreams will be shattered and lives lost before it is over. I hope there will be a rainbow with light at the end.

The lesson that needs to be learned is that unrestrained capitalism cannot be tolerated. Greed and capitalism must be kept in check. The heralds of deregulation must bear their share of responsibility. Unfortunately, it will be not only the individuals but the nation as a whole that will feel the blunt of the recession. Meanwhile the robber barons of Wall Street will walk away with bags full of cash.