Recognize financial policies as failures

Treasury and federal bailout actions of institutions “too big to fail” contravened capitalist dogma of free markets. We stand in a quandary of stalemate in finances, housing and employment. Still, the architects of ruinous financial policies are hailed in some quarters as having “saved the economy” or “prevented us from going over the cliff.”

Meanwhile, overseas, the spread of the contagion of derivatives by Wall Street investment houses have contributed to a possible collapse of various European economies, Greece et al., which could have the domino effect of tearing apart the eurozone. As a major trading partner, disruptive eurozone finances will have an adverse impact of the U.S. economy.

The proper policy would allow the corrective forces of capitalism to weed out self-destructive institutions and implement standard judicial bankruptcy proceedings. This action would have aborted the crescendo of pouring good money to salvage bad assets. The opportunity existed 18 months ago of channeling funds into new and self-sustaining uses, such as infrastructure maintenance and improvements, traditional businesses and new technology ventures. The result would have been an increase in employment and income for American entrepreneurs and employees, instead of further lining the pockets of those responsible for the downturn.

George Black

Iowa City