Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The banking problems we experienced are due to precisely ONE thing:
The US government. Fannie, Freddie, etc.
Nothing else. The US government distorted the market by sponsoring vast amounts of unsustainable, cheap, and unqualified credit, as a political stunt to claim a growing economy.
Glass Steagall has precisely ZERO to do with that.
Yes.....it had nothing to do with rating agencies give Aaa ratings to junk securities....and being paid by the banks to do so....give me a break.
First Jimmy Carter deregulated the Savings and Loan industry not Reagan. Reagan was against the heavy hand of government regulation. The Bailout of the S&L was done in the eighties. It had nothing to do with the current crisis. Carter also created the Community Reinvestment Act to assist minorities. Clinton repealed Glass Steagall act that separated banking and financial services firms. This crisis in the sub prime was brought on by Democrats. Jimmy Carter started the community reinvestment act. A typical liberal program started with good intentions to make sure poor people were given a fair opportunity to get a mortgage in a bad areas. It was subverted by Clinton who had Janet Reno threaten to stop Banks from expanding unless they made more loan to poor people. I'm in banking I know. Lending ratios went out the window. They then had political hacks like Franklin Raines put in charge of Fannie Mae. They took the companies financial off the books,(The only publicly traded company allowed to do that), guaranteed the full faith and credit of US Government and bought up all these bad loans. Raines made millions as CEO. When he appeared before Congress Barney Frank and all the liberals backed him and dismissed all concerns as did Senator Chris Dodd. The Bush administration complained once then dropped it. These politicians should be in orange jump suits next to Bernie Madoff for the millions the cost the US citizens. This policy started by Clinton, Janet Reno and Andrew Cuomo to expand the Community Reinvestment act created the housing bubble and the crash.
Excellent points!
Bundled subprime mortgages became the highly overleveraged toxic assets in Clinton's unregulated derivatives.
The same Franklin Raines was on Clinton's financial "working group" along with Sleepy Summers and Bob Rubin when they advised Clinton to leave derivatives unregulated, and so he did.
Bundled subprime mortgages became the highly overleveraged toxic assets in Clinton's unregulated derivatives.
The same Franklin Raines was on Clinton's financial "working group" along with Sleepy Summers and Bob Rubin when they advised Clinton to leave derivatives unregulated, and so he did.
In 2008, it all came crashing down.
2006 my friend. June 2006 was when the walls came tumbling down!
If them big old banks did not know by Jan 2007 that there was an issue, their CEOs are at best guilty of malfeasance.
How do conservatives today view Ronald Reagan's role in the Savings & Loan scandal?
He had no role so I feel nothing about it.
Quote:
Some consider this to be the foundation of our current day financial troubles.
Only a partisan liberal idiot would think that. I mean come on. Reagan was out of office two decades before our current financial troubles. Why don't you just say it's George Washington's fault? Blaming Reagan for today's financial troubles is just moronic in the extreme.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
