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Originally Posted by roysoldboy
Many years ago the Democrats ceased upon the fact that deregulation had caused the economic problems with no proof of what they were saying.
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Democrats still want to regulate finance and the environment, so that part isn't true.
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When regulatory agencies told banks to make bad loans
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Regulatory agencies never told banks to make bad loans.
The CRA program was the only "forced loan" program, and that program was tiny. And the loans didn't go bad any worse than other loans did.
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for people to buy houses they couldn't afford was that deregulation?
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Yes. Countrywide is a good example. No regulations
forced Countrywide to make reckless loans. The regulations
allowed them to make reckless loans without consequences for Countrywide -- it didn't force them to.
In all of this talk, "regulation" and "Deregulation" are really not adequate words to describe what happened. Even after the Republicans and Democrats "deregulated" our finance industry, the market was still heavily regulated in a way that gave banks a HUGE advantage over the rest of the population. All they did was "deregulate" the aspects of financial regulation that might make the banks accountable for taking big risks.
"Deregulation" is often used interchangably with, "Regulation that disproportionately benefits financial companies."
"Regulation" is often used interchangably with "Regulation that disproportionately harms financial companies."
We have never truly DEREGULATED finance.
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Yet the GOP seems to think that anybody can see that this has happened
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The GOP is repeating a lie, just like you. That's why y'all voted for Romney in the primaries. That's why y'all are going to lose this election to Obama.
Obama was vulnerable this election cycle, and the GOP totally failed to reform itself. Instead of looking inward and saying "Where did we screw up during the Bush administration?", they cranked up the propaganda machine to try and make it look like the mortgage crisis was caused by
something,
anything, vaguely related to the Democrats.