Regulators at fault

The country’s financial mess can be placed at the feet of the regulators, those handed the responsibility to control the financial industry, according to Mike Marohn, senior vice president of wealth  management for the local branch of Smith Barney.

Marohn told a meeting of the Lacey Rotary Club, that all up and down the line, regulators failed to do their jobs, from the Security and Exchange Commission to bank regulators, the public was let down.

“It was like the old West,” Marohn said.  “People did anything they could get away with, and the sheriff wasn’t around.”

Marohn said the current crisis was a crisis of liquidity.  Banks aren’t able to loan money, particularly to other banks, and consequently credit dries up.   He said that the new loan bailout, approved by the United States Senate, will free up money so banks can begin to loan again.  The House of Representatives will take up the bill when they meet back into session on Friday.

He advised everyone not to panic, but to take a deep breath and look at the opportunities available in the current market.