by Roman Y

Created on: April 22, 2010   Last Updated: April 23, 2010

The financial crisis of 2008 has touched pretty much every person in United States, rich or poor.  Real estate bubble burst, credit dried up, unemployment skyrocketed and bankruptcies went through the roof.  This is when you expect your government (to which you give about 3 months worth of your pay every year to) to step in and make everything nice.  That is exactly what happened. 

Government stepped in, bailing out Wall Street as well as Main Street.  All was getting nice until it hit us that Government's long presence is never good.  This time is no different.  After putting economy on somewhat firmer footing, Government had Toyota moment (instead of brakes, accelerator pedal is stuck). 

The Government went insane, just like the real estate price after 2005.  First they continued to print money, which should eventually lead to a very high inflation.  Second, they passed Health care reform.  Do not get me wrong I am for the reform but not the one that will cost me more taxes. 

Look, if the government was not able to provide free health care now with all the taxes that we are paying, how can they afford to later? (but that is a totally different subject).  Third, the government went after the Wall Street and pretty much put all the blame on them. 

Well, here is a question - Who was paying $500K house in Florida?  Was it Goldman Sachs or some Joe/Jane who had a $40K annual salary and thought that housing was a 100% bullet proof investment?  Financial crisis did not occur when Bear Stearns or Lehman Brothers went bust.  It began way before. 

It began when some Joe/Jane decided that credit is their free and does not need to be repaid.  It began when some mortgage broker gave a $500K loan to someone without verifying their income.  It started when none of the politicians stood up to say 'hey, what is with the doubling of house prices so quickly. 

It started when politicians were praising economic growth without ever being on the actual 'playground'.  It started when oil prices went from $50 to $150 per barrel, therefore causing a huge inflation, which government numbers never really showed.  It started when Government decided not to question Maddoff?  The list goes on and on.

The simple fact that every American needs to understand is that Wall Street is not to blame for all our troubles.  Yes, there are a few crooks out the on Wall Street and they will always be there.  But there are crooks everywhere at Enron, MCI WorldCom. 

Even today there are crooks which will eventually fall.  However there are crooks between us, people on the Main Street, and not only crooks but pretty much dumb and/or arrogant people.  The job of the government is to protect our country/society.  This is their job and we pay them to protect us.  But they have failed. 

Hence, they are the ones who should be responsible and they are the ones who should pay.  Banks have already paid back every penny with interest.  However, we have not seen a single penny from a huge profit they have made on bailout.  That is because government is in for itself. 

It’s there when it needs it, but not there when you need it.  Yes, Obama might be trying to change things, but he is barking at the wrong tree.  He should be cleaning up Washington’s backyard, instead he chose to go after Wall Street.

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