That's why you need government regulation. We turned out backs on the lessons learned from the Great Depression. Capitalism, if lead to its own devices causes boom bust cycles and if taken to the extreme causes many injustices. This was true before the Great Depression.Matt Tabaii (or something like that) wrote a series of articles regarding the "global" meltdown which hurt everyone including our pissy little country at the bottom of the world. He writes in an accessible vein that the common man can understand and get some form of grasp on the sheer greed of the BIG monetary institutions that care not a whit for the human condition ....... scumbags from the top down to the lowliest trader,knowingly ruining peoples lives under the auspices of profit at all costs. The reason I tend to have an interest in this complete mess that changed the power vacuum of the planet ....... our present traitorous Prime Minister (who is looking like being re-elected this year) made his millions as a commodities trader for Merrill Lynch,the heap of shit !..... hey,as the U.S writhed in the throes of meltdown (as those at the top liked to call the common man being tipped on the street ....committing suicide etc) who was buying up Government Bonds ? No ?....one small hint then ......... very inscrutable lot ... who now own around 80% of the U.S.A.!!!!!!! Try and find pictures of Obama with their leaders...... in the right light you can just see the strings attached to him !
The Great Depression was so devastating that even the people who ran our financial intuitions at the time were affected, not only financially, but due to the mass misery caused and social upheaval it caused. This led to laws and regulations that prevented it from happening again. Over time we kept peeling back the rules and regulations ... if a little less regulation is good, more must be even better, right?
The world has also changed and the financial industry is more complex than it was now. We probably need additional rules and safe guards. Maybe it will take another Great Depression for people, including people in the industry, to see the need for this. Even after the recession they want weak reform. I have no faith in our politicians from either party. They are ALL controlled by lobbyists with their own short term self-interests.