Change Is Coming

April 6, 2011

As we pass April 1, marking 25 percent of 2011 behind us, we can only hope that the remainder the year improves. Since the beginning of the New Year, the world has been rocked with turmoil, most strikingly in Japan, with its triple tragedy of earthquake, tsunami and nuclear radiation leaks. These events will change life not only in Japan, but worldwide as we learn about the outcomes and adjust to mitigate future similar scenarios.

We have witnessed citizen revolutions in several Middle Eastern countries, fueled in part by social media availability to the masses. How will new governmental regimes react? Are we on the verge of a worldwide revolution against existing governments?

Even here in the conservative Midwest, our nation’s heartland, minority party walkouts in Indiana and Wisconsin have caused virtual shutdowns of these state legislative sessions. Again, I ask, is this the beginning of a worldwide revolution against governments? If so, what will the new model look like?

Banking, too, has been experiencing its own revolution in the past few years. It began with the mortgage meltdown, largely caused by forces outside the real banking industry, and continues with typical overreaction of the powers that be in Washington, DC. In the past three years, the Federal Deposit Insurance Corp. has taken over more than 300 banks, most of which never made a toxic mortgage loan. Now banks are bracing for Dodd-Frank Act rules and regulations being drafted by federal regulators. Sadly, I fear, many of those rules—some not even necessary—will be drafted so poorly as to cause far more harm than good to the economy.

For sure, banking will change. The cost of banking services will increase for small businesses and consumers, while little will be done to deal with the root problems that caused this awful recession.

Let’s all hope that the worldwide revolution brings about changes that actually solve the problems of the masses. Let’s hope that the result is better than the Dodd-Frank Act at dealing with root problems!

– S. Joe DeHaven

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