Paul Farrell is full of SH*T!
” Reaganomic ideologues weren’t so myopic and intransigent about proving their free-market deregulation theories, they could have acted earlier and prevented today’s colossal mess. Instead, their ideology kept the bubble blowing, delayed the pop, making matters worse.”
WHAT A LOAD OF CRAP ! IT WAS THE CARTER/CLINTON SOCIALIST EXPERIMENT CALLED THE COMMUNITY REINVESTMENT ACT THAT LIT THE FUSE:
The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities
Howard Husock
Winter 2000
The Clinton administration has turned the Community Reinvestment Act, a once-obscure and lightly enforced banking regulation law, into one of the most powerful mandates shaping American cities—and, as Senate Banking Committee chairman Phil Gramm memorably put it, a vast extortion scheme against the nation’s banks. Under its provisions, U.S. banks have committed nearly $1 trillion for inner-city and low-income mortgages and real estate development projects, most of it funneled through a nationwide network of left-wing community groups, intent, in some cases, on teaching their low-income clients that the financial system is their enemy and, implicitly, that government, rather than their own striving, is the key to their well-being.
http://www.city-journal.org/html/10_1_the_trillion_dollar.html
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Without the derivatives market, we could fix the mortgage problem. However, the derivatives market makes this problem many times larger - we don’t even know how much larger. At least on the scale of 10 X larger.
Do you understand the concept of derivatives?
These have nothing at all to do with the Community Reinvestment Act.