Capitalism and the free market itself did not get us into this mess, rather it was the actions of certain people that did. Saying the free market did this is like saying guns kill people, or that technology X is evil. The free market, like guns or tech X, is an inanimate object not capable of doing anything on its own. It's what people do with the object that is right or wrong. Sure, these things may make it easier for some to perform the wrong actions, but it's not a reason to outlaw them.

Bernie Madoff and others like him are fraudsters, and they should get what they deserve. Yes, those protections were weakened, and wrongfully so. No, he did not singlehandedly cause the financial meltdown we are currently experiencing. It was a perfect storm of events, mostly precipitated by Wall Street hucksters. Their schemes should have received more attention from Uncle Sam than they did because, although they were working under free market conditions, were antithetical to free market ideals. There was too much fake money floating around chasing too few things of real value. This fake money came from both our government as well as supposed paper profits from various investments. This caused things like $4.00 gas and the real estate bubble. The consumer finally reeled from this double barreled threat at a time when it was no longer possible to borrow their way out.

No, the problem was and still is too much borrowing of money.

Derivatives, as I understand them, are much like taking out a life insurance policy on someone you don't know, and therefore stand to financially benefit if they were to die. Therefore it is in your interest to make sure that person dies, or in the case of derivatives, that the company in question is run into the ditch. Whether or not this should be allowed is up for debate, but personally I think derivatives should be illegal for the reasons I stated above. That may sound like I am advocating against free market ideals, but there is not a truly free market when things like derivatives exist.

With regard to home mortgages, for some reason our government did and continues to argue in favor of home ownership. Not sure why, it doesn't make sense for everyone in all cases. They do this chiefly by using the tax code, giving tax credits and rebates. Again, like Cash for Clunkers, we have government encouraging people to get into debt. Not always a good thing, unless you are a banker making money off interest payments.

Lest anyone think I espouse these views because I am wealthy, let me assure you I am not. In fact, I would probably be better off under some form of government assistance. I choose not to, because I feel it is wrong to steal money from others (in the form of taxes) to support me and the stupid mistakes I have made in life. I am working, by myself, to learn from them and improve. That's why I come out so hard against debt. I have been through bankruptcy, due to mistakes on my part as well as situations beyond my control. I may not have all the latest glitz, but what I have is paid for (except for a student loan, the last debt I have).

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Erich Loepke
2010 Ford Focus
Currently Benz-less