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To: BGHater

He’s not far off on this one.


3 posted on 05/13/2008 3:09:56 PM PDT by pissant (THE Conservative party: www.falconparty.com)
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To: pissant

He’s half right,

The other half of the problem was government letting Wall Street Police themselves. It wasn’t the government who said the securitization of the subprime mortgages were investment grade.


21 posted on 05/13/2008 4:43:41 PM PDT by Philly Nomad
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To: pissant

The Gramm-Leach-Bliley Act contributed to the housing bubble. Clinton signed this bill that scrapped the Glass-Steagall Act in 1999, at least the part that separated investment banks and commercial banks.

I think you’ll find that this opened the door to securitizing mortgages and treating them simply as investments. Divorcing the writing of mortgages from owning them is a huge invitation to fraudulent appraisals, loans to the unqualified, and the whole train of abuses that fueled the bubble.


25 posted on 05/13/2008 7:51:00 PM PDT by Pelham (Press 1 for English)
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