mrd

If the consequences of the current financial challenges faced by the United States right now could be contained to Wall Street then there would be no debate in Congress; because there would be no bail out on the table.

Unfortunately, if allowed to run the full course, this catastrophe on the Wall Street financial markets would flow through and effect all Americans in both a seriously and significantly way.

It would not stop at the borders of the United States, but would flow around the world affecting us all.

Therefore to simply say “why should we bail out the fat cats” and oppose the bailout, demonstrates a lack of clear understanding.

While Wall St has caused this problem, it is the systemic failure of the American government over various administrations that is at the root of this problem.

They failed to:

• Reign in those excesses
• Address the corruption
• Regulating the markets
• Prevent the free market concept being subjected to extremism

The Government did not directly cause the problem, but indirectly they are guilty of contributing to it. Their failure to build the secure railway track has resulted in this runaway train wreck.

Therefore, in my opinion, the United States Government does have a moral obligation to contain the damage, rebuild the track and protect the average citizen from fallout that they probably cannot imagine right now may befall them.

The free market has delivered a problem under a regulative environment that was doomed to failure. Therefore, the Government now has an obligation to fix that regulatory environment to ensure this never happens again.

Unfortunately, like it or not, the only way confidence and strength will come back into the economy is via the free market; and that free market is currently crippled. Given the U.S. Government has been a part of the problem, they must be a part of the solution; as fair or as unfair as that may seem to the average person.

Happy Investing,

Nick Lockhart