Posted on 07/29/2015 8:56:33 AM PDT by Servant of the Cross
Overturned Glass-Steagall.
Yes, but G-S wasn't the origin of the crash. The Community Reinvestment Act passed under the Carter admin precipitated the whole thing. Banks and lending institutions were forced to create sub-prime loans.
All based on a lie...that lending institutions were deliberately discriminating against i.e. redlining minorities, chiefly blacks. No enforcement of the CRA under Slick Willy, no creation of sub-prime loans, no subsequent credit default swaps, and no crash in 2008.
If you think that’s the main cause, you’re an economic ignoramus..
The VAST majority of sub-prime mortgages were issued between 2000 and 2008. During that time, the Bush Admin had total control over the Comptroller of the Currency and the FDIC...those responsible for regulating the banks.
They were ALSO solely responsible for enforcement of the CRA during that period.
By the way, the CRA penalties are not draconian. If a Bank does not comply, they cannot merge or acquire or branch.
Certainly the CRA had great influence, but it does not detract from the Dereliction of Duty on the part of the Bush Admin, nor absolve a Republican Congress from changing or eliminating CRA when things were getting out of hand.
There was just too much money flying around for a Republican Congress to be concerned.
I am actually well schooled in economics. I found that I had to learn about finance on my own as it's a treacherous subject.
But it doesn't take a rocket scientist to know that there were very knowledgeable people in both the Bush Admin and the Republican Congress that not only saw it all coming, but had the power and INFORMATION to stop it.
Easily.
Regulatory control.
Political control.
Legislative control.
Hell, they even had absolute control over who every Fed Bank President would be, but the Chairman as well.
While I'll praise your efforts toward a virtual Congress, I'll not shy from this debate.
Republicans had total control of every lever of power during the period of the greatest excesses and they knew what was happening.
They chose to get paid instead of doing anything about it.
The Gramm/Clinton bill was just the supporting mechanism that provided legal cover.
troll. Lefty. I wondered what another poster meant when he called you an outted muzzie liberal...guess we know now.
Gee, I would not normally expect that from a learned man as yourself.
Nobody on this forum, or anywhere else has ever accused me of being a "outed muzzie liberal"
I guess that just means you're a LIAR and unworthy of posting privilege at FR.
Trump doesn’t mean anything he says?
“Mistress of Disaster” sounds just about perfect. Threw up the infamous intelligence “wall.”
Actually, I think he believes the liberal pabulum he spouted about the economy and about Walker. That's really disturbing.
I also think he believes what he's saying about the media, the border, illegal crime, the establishment, Rove, etc, and all of that is good.
Yep, protected Fannie and Freddie right while they were up to their worst practices, several years after making 9-11 possible by being THE architect of the "wall" between the FBI and CIA. Seriously, maybe the worst American of all time. Probably done more harm than even Barack Obama on balance.
Yeah, for awhile there if you could fog a mirror you got a loan. Honestly, Countrywide was one of the worst actors in the industry. They were known for inflating appraisals using staff appraisers and “creatively” making loans work that should not have.
As a Broker I was always amazed how we got blamed for inflating appraisals. Whenever I would submit a file, my appraisal always got reviewed, no exception. I couldn’t have cheated there if I had wanted to, which I didn’t.
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