William Eichler

The Credit Bubble: Deregulation Gone Wild

The financial stocks have paid...via large, price declines. Bear Stearns
especially...it is gone. Perhaps the government will bankrupt the issuers of the debt it took on from private parties...one can hope.

Obviously some new rules need to be established...perhaps over-
sight should be concentrated. As always, the S&L scandal being the poster-child for this, government aid for failure but no limits on economic behavior eventually leads to disaster.

This is inherent to free-market testing of economic behavior. It is not a condemnation of Capitalism that extremes are reached [that would be like complaining about your weather because it got too hot or too cold]. It is something to be aware of and to be avoided...not an easy task, for regulators or Capitalists.