by E. B. Smith

Created on: September 21, 2009   Last Updated: September 24, 2009

It was during the Ronald Reagan years we discovered the phrase "Trickledown Economics". In brief, It was the philosophy that If we save the rich money they will pass it down to the middle class. How wrong he was. Or was He? Financial regulations is needed in the United States but not to the point where it makes companies scared to take chances. It's a very tricky thing to do. Making stringent rules governing and preventing finacial institutions from creating systems and schemes add the expense of the American people.

Trickle Down economics today have caused the financial meltdown in every area of profit and investment. The only difference is the trickle down has been tweaked. The blunt of the cost of the losses has been on the backs of average Americans. American automakers decide to continually make sleek cars with no durability or quality. Cars and trucks that had bad reviews for years.

When people get fed up and decide not to buy the cars anymore, instead give the business to their foreign competition. The American Car maker lays off thousands of people and shut down dealerships and give CEO's settlements. This scenario has played out itself over and over lately and it is time for it to stop.

A family in Ohio worked out loan modification for their home of two years. They spent countless amount of hours on the telephone with their mortgage companies counselors, only to find that when the deal was set to close, the loan was sold to another large investment company with a mortgage sub company. The former mortgage company started off as a investment group that secured tens of thousands of mortgages around the country. When the system failed. They crumbled as well, leaving many home owners confused and nervous.

The greatest thing to do is make a rule that says that if you decide that your company is going to take a risk an investment in areas that most analyst believe is risky, and the company proceeds,the rule will ensure that the company must honor all of their obligations including pensions and salaries for a year. Wishful thinking.

No politician is bold enough to come anywhere close to this proposition. Financial regulations should make companies think twice before they expect that consumers will be the only ones to pay the price for a bad investment. I sure hope the government hired by the people for the people make the rules fair and balanced.... oops sorry.

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