(ominous music)
- After the Great Depression,
we actually look at
what caused the problems
and we actually move to fix them.
At that point, even though
FDR had actually been opposed
to deposit insurance,
he took the bold step
of creating deposit insurance.
And that stopped these
kinds of destructive runs
and gave people confidence
that they could actually put
their money in the bank,
like your supposed to,
save over 10 years, get enough
money for a down payment,
and buy your home.
Glass-Steagall adopted, as
part of that same legislation,
and they create the Securities
and Exchange Commission.
Again, to give people confidence
that they can do the things
we're told to do, invest.
Right, in a diversified
portfolio, that good-type stuff.
Well that makes sense if
it's an honest system.
If it's dishonest, why
would I put my money
in that kind of system?
In other words, when we stop the crooks,
we make capitalism work, and
only when we stop the crooks.
- And I'm not saying that
regulation is always good
or that more regulation is
always the answer, it's not.
Ideology would suggest that
you are either in favor
of regulation or you're
against regulation.
Well, what if you're just in
favor of smart regulation,
better regulation, the most
rational regulation possible?
Where does that put ya?
I would suggest that at that point,
you're making evidentiary based
decisions about what works
the best rather than
ideological decisions,
more regulation, less regulation,
which really doesn't make
sense when you think about it.
So, to me, capitalism and smart
regulation go hand-in-hand.
You need 'em both.
And one without the other,
I just don't think it works.
- When somebody can
make a loan to somebody
knowing that that loan
is not, when it resets,
when that adjustable rate comes in,
they're not gonna be able to afford this.
But I will have gotten my fee,
as the lender or the broker,
and I don't care what
happens to this person.
And that, there's nobody in
the government whose gonna take
a look at that and say, oh, no,
you can't do that to people.
Because independent mortgage companies
had almost no regulation over them.
So this is what you get
when you have no regulation.
The institution should
not be able to gouge you,
they should be able to con
you, they should not be able
to cheat you.
And if they do, then we
have institutions within
the government that insure
that those people pay for it.
- Honesty is good business.
Rule of law makes honesty something
that can actually
prevail in a marketplace.
Absent rule of law and figurous
prosecutors and regulations,
the cheaters will prosper.
