In response to the 2oo8 economic crisis, Congress has taken steps toward the most extensive remapping of financial regulation since the 1930s. Among other things, the bill gives regulators power to constrain the activities of banks and if these buffers don’t work, the government would have power to seize and liquidate a failing company that poses a threat to the broader economy.
This knee-jerk response of politicians to the current economic crisis was entirely predictable. Having no understanding of its underlying causes, their symptomatic approach was to institute another layer of regulations on an already over-regulated economy. When self-regulation of the free market economy on the local, private level breaks down, compulsive regulation on the Federal level must take over bringing with it another layer of economic armor in the form of greater regulation.
The real source of the crisis lies outside the province of politicians. It has to do with the pathological, destructive behavior of ordinary armored human beings manifested as greed, irresponsibility, feelings of entitlement and corrupt business transactions bordering on quasi-criminal activities that are expressed on a daily basis in the economic realm. Unless this manifestation of the emotional plague is recognized and addressed, this endless cycle of sick economic behavior of armored people followed by more governmental control will continue and take its toll on people’s economic and personal lives.