Wall Street Problems An Opportunity for GOP by Kent Misegades

As someone who had planned to enjoy an early retirement from the corporate world and build a new business on the profits from my investments made the past 30 years, I am angry over recent revelations that the financial crisis we're now in has been caused largely by elected officials and the special interests they serve.

As elected officials and candidates for office this fall, I hope that you will use every opportunity to educate voters on the history of excesses at Freddie Mac and Fannie Mae, who within our federal government is to blame for this, and why it affects every citizen of the United States.

Nearly as scandalous as the Democrat leadership that is largely to blame for the mess is that fact that GOP leaders did little to inform voters as to the extent of the corruption and liability we all now bear. To make matters worse, our administration continues to appoint former banking leaders to positions of authority in the government, many of whom are Democrats and bear much of the blame.

To average citizens, the notion that obtaining a mortgage without a significant down payment and the income to pay one's debt is a foreign concept. As it becomes clear to these same responsible citizens that they will now have to bail out fellow citizens who live beyond their means, I believe that there will be an outcry and very little support for assistance. I am sure that Milton Friedman would agree with me that it is far better that we now cut our losses, tighten our belts and live within our means in the future.  If this means that many homeowners default on their loans and greedy or sloppy banks close as a result, so be it. Otherwise we are faced with the prospect of a decade or more of economic limbo as Japan experienced when it propped up its banks during the real estate melt down of the 1980s. There are winners and losers in free markets, but all lose when governments meddle in what is a natural economic process.

Most voters are looking for courageous, straight-talking politicians this fall and can deal with the truth, even when it is unpleasant.  I hope that you continue to belong to this minority of elected officials.

Editor's Note:

Kent Misegades is Chairman, Board of Trustees at Thales Academy in Apex, and President at AeroSouth.