Furthermore, and as much as I hate to admit it, John McCain was more accurate than not that our economy overall is sound. The financial markets on the other hand...
Now, before you get all huffy, I know it's all interrelateded, but still in all...
Back peddling dribble. Gramm and McCain are up to their eyeballs in this mess. The NRO knows that the hammer is coming McCain’s way, and rightfully so. They are just making an attempt to ward off the political blows. I deeply suspect that it’s also the real reason why McCain is now in D.C.- to cover his tracks. Obama and the democrats are fully and completely guilty as well. However, McCain is running on “Straight Talk” and “Country First” reform. He’s about to get hit upside his lying, hypocritical head with a “bi-partisan” electorate 2x4.
1) Every financial institution, in order to compete with all of the others is strongly encouraged to engage in high risk investing at the expense of their core business.
Countrywide went down not because it was primarily limited to the home mortgage market, but because it transformed mortgages into risky investments through securitization.
2) Financial institutions can now own everything. Including the ratings agencies and the financial press. Where is the average investor to go for sound advice when everyone is in bed together?
If I'm wrong on either of these points, please point out my errors.
Wrong....
The repeal enabled commercial lenders to underwrite and trade instruments such as mortgage-backed securities and collateralized debt obligations and establish so-called structured investment vehicles, or SIVs, that bought those securities.
Guess who is in trouble which nobodies talking about and the crisis becomes clear.
BILL CLINTON SIGNED INTO LAW ALL OF THE PHIL GRAMM BILLS THE LEFT KEEPS SIGHTING WHICH SUPPOSEDLY CAUSED PROBLEMS! CHECK WIKIPEDIA!!!!!
Try this, here is ground zero for the Fannie Mae/Freddie Mac meltdown:
How A Clinton-Era Rule Rewrite Made Subprime Crisis Inevitable