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.
Explain how Frank, a minority member on the House Committee, overruled all those majority GOP members in making policy.
As the ranking minority leader/member of the committee, he can easily stop proposed legislation from ever getting out of the committee and to the floor of Congress.
Not very educated in parliamentary procedure are you?
Why do you keep ignoring the videos where you can see and hear Frank and Watters ( just to name two of many Democrats) saying there is no need for regulation and that there is no problem?
A summary I wrote five years ago. Still very timely today.
----------------------------------------
An hour-long program on the origins of the current financial crisis, was put together by Fox News in 2008. It contains a great many clips from various officials who were involved, interviews by news people, etc. They called it "Saving Our Economy". Someone put it on YouTube, in six segments. Go there and do a search on that title, and you should get all six segments. They vary from 5 to 10 minutes each, about 45 minutes running time total (no commercials).
It's an excellent explanation of how the crisis started, who did what, what the results were, etc. A real must-see.
There have been and will continue to be documentaries on the causes of the financial crisis with various blame.
One could drive a truck through the spin within this particular report.
I prefer to keep it simple.
Banks were lending money to anyone with a pulse. They sold whole loans to Wall Street who sliced and diced them and repackaged them as private label securities that were in effect, patented, when the independent credit rating agencies assigned them investment grade ratings.
So called conservative investors, pension plans, retirement funds, insurance companies, mutual funds, hedge funds, U.S. and global banks and FHLMC and FNMA invested their own capital and other people's money into these products solely because of the investment grade ratings and a better projected return on their investment than they could obtain from other investment grade investments. In doing so, they unknowingly became the source of funding the dirties of the sub prime loans.
( FNMA/FHLMC's market share declined as the bubble inflated. The worst of the junk never hit FNMA/FHLMC because they were not conforming loans. They did however use their own capital to invest in private label securities that had been assigned investment grade status by the independent credit rating agencies. When those bonds tanked, so did their respective balance sheets)
In 2004, the SEC reduced Net Capital Requirements for the fab five, Bear Stearns, Lehman, Merrill Lynch, Morgan Stanley and Goldman Sachs and in doing so allowed them to leverage to the max.
The panic was caused by a credit run by global institutional investors. Had the government not stepped in, the Greatest Depression would have occurred.
U.S. history shows that this was not the first financial crisis this country has seen. All can be boiled down to risky lending practices, inadequate regulation and excess leverage. The last biggie occurred in the late 80's, the S&L crisis.
All that stuff was in play until the deregulated manipulators on Wall St had pushed things so far over the edge, the market decided that they should all go broke. At that point, all of a sudden the battle cry changed to "privatized wealth, socialized debt."
No, Barney Frank is not the one to blame for the economy collapse.
Agreed. Neither is Bush. Greenspan and his "froth" comment likely added to a false sense of security.
I have become quite fond of Hank Paulson's take. " People were making too much money to consider the consequences"
The bubble ( not tax cuts) drove the economy for a blip in time.
Blame it on a global culture of greed.
At the bottom level, millions took on mortgages they had no rational way of paying because they assumed homeownership was the express train to easy street. Millions prematurely withdrew equity from their homes and used it to live substantially beyond their means. Not one of them had a gun to their head.
And yet, through the worst of it, most people remained employed and made their mortgage payments even when they owed more than their home was worth. They chose to honor their respective promises to repay and avoided strategic defaults.
Last edited by middle-aged mom; 09-15-2013 at 09:10 PM..
As the ranking minority leader/member of the committee, he can easily stop proposed legislation from ever getting out of the committee and to the floor of Congress.
Not very educated in parliamentary procedure are you?
Our government isn't parliamentary.
Quote:
Why do you keep ignoring the videos where you can see and hear Frank and Watters ( just to name two of many Democrats) saying there is no need for regulation and that there is no problem?
Agreed. Neither is Bush. Greenspan and his "froth" comment likely added to a false sense of security.
I have become quite fond of Hank Paulson's take. " People were making too much money to consider the consequences"
The bubble ( not tax cuts) drove the economy for a blip in time.
Bush is to blame because he was the coach at the time. The economy collapsed during his watch, he can't brag about the economy doing good during his presidency if he can't be blamed when it collapses.
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.
