Posted on 11/19/2016 10:55:19 AM PST by expat_panama
Regulation: One of the biggest myths standing in the way of dismantling the Dodd-Frank law is that it somehow reversed the Republicans' "deregulation" of the financial sector in the late 1990s. This is entirely false.
Lawmakers are in a desperate tizzy...
...Democrats' narrative about the financial crisis, which goes as follows: In the late 1990s, mean Republicans took advantage of an impeachment-weakened President Clinton and passed the Gramm-Leach-Bliley Act, deregulating the banks and setting off a massive, speculative boom in real estate lending fueled by unbridled Wall Street greed. By 2008, the excesses of these eight years of greed exploded, leaving bankruptcies, mortgage defaults, and ruined balance sheets in their wake.
The newly elected Democrats stepped in and, in 2010, passed Dodd-Frank, which reined in the big banks and restored order to the markets.
That's the story — the myth.
The reality is, the financial sector was re-regulated during the George W. Bush years...
..."A deregulated financial system is not what imploded in 2008,"...
...Nor did those mountains of regulations and the promise of bailouts for badly run firms help "main street,"...
...banks have never been more under the government's thumb.
(Excerpt) Read more at investors.com ...
They're wrong.
You can go back to the National Home Ownership Strategy from 1994 or 1995 and read it in pdf. It clearly states the network it will create, the cheaper made housing, secondary investment markets, increase in loan defaults etc.
We’ll bail out the banks again and again until the final collapse.
There's simply no way in hell that a bank whose deposits are guaranteed by the Federal government should ever be permitted to engage in risky -- even speculative -- lending and investment practices. The whole purpose of Glass-Steagall was to separate the commercial banking industry from the mortgage banking industry. The operating environments for these two industries are so different -- largely due to different tax laws and the aforementioned depositor protection -- that they should function completely separately.
Regulation should be:
1. Simple
2. Evenly enforced
3. Bare minimum needed
We have never had regulation like this, it is either too complex, selectively enforced, totally overbearing, or all three at once.
The two most discredited terms in the political lexicon are “reform” and “deregulation”.
We hear all the time from the extreme left that there was "deregulation of the banking industry in the late 1990s", and it never seems to matter that virtually all the Glass-Stiegel act remains while mountains of new regs were passed (like forcing banks to loan to penniless minorities).
Boy, who knew? Govt tasked w/ supporting an economy? /s
Does one expect the outcome of Fascism, Socialism, explosive growth of govt and a fiat currency.
Maybe the TRUTH of getting back to the constraints of our Constitution should be at the forefront instead of quibbling about nibbling around the edges of the effects of govt.
The way the extreme left constantly rewrites the dictionary makes discussing policy impossible. Long ago "gay marriage" used to mean the happily excited union of a man and a woman. Also, reducing taxes was not considered "spending", and spending was not called "investment".
Things change, but these clowns are changing the language so as to advance an agenda by fraud.
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