Financial crises are a result of politicians monkeying with system

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The financial crisis of 2008 still looms large, even eight years afterward. That is because it was so devastating.

The banks, most all of them, got bailed out by the government. Some big corporations received bailouts, too.

“Too big to fail” became an ugly rallying cry.

Middle America took the hit.

Some people lost jobs. Others lost their savings. Still others lost their homes.

In certain cases, people lost all three – jobs, savings and home.

How?

Well, the bottom dropped out all of a sudden. That resulted in devastating job losses overnight.

People turned to savings to sustain them.

As the savings dwindled, the bills mounted. It became a matter of survival. You paid the bills that had to be paid. Sometimes that meant not paying the mortgage. People lost their homes because hard times persisted.

Ronald Reagan used to say, “A recession is when your neighbor loses his job. A depression is when you lose your job.”

It is a Great Recession or it is a financial crisis. (Actually, financial crisis is the more appropriate term.)

Recessions, we can deal with because we know recessions come and recessions go.

It is all part of the ordinary business cycle.

Financial crises are something completely different, however.

We should not have to deal with that degree of uncertainty – not if our leaders are doing their jobs. The jobs they are paid to do, by the way.

Financial crises are the direct result of politicians monkeying with the financial system. It has to be.

Why?

Because they want to be re-elected or because they want to retain power or something similarly bogus. Politicians being politicians.

Hillary Clinton, the presumptive Democratic nominee for president, told leaders in the financial sector, “We got into this mess together, and we’ll get out of it together.”

I do not know about all that, Mrs. Clinton. Besides, they – the financial chieftains – got bailed out by the government. They got out!

The ordinary folks did not get out. Meanwhile, Middle America is still not out but is still recovering. If that is what you want to call it.

Growth has been anemic since the Great Recession. Years and years of careful investing and saving, wiped out just like that.

It did not have to happen. Wrong, so very wrong. Can it happen again?

One shudders to think.

ROBERT PEELE

Rocky Mount