How Deregulation Lead to the Financial Crisis

Discussion in 'Economy' started by Toro, Apr 18, 2009.

  1. Toro
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    Toro Diamond Member

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    From Henry Kaufman

    Henry Kaufman: What the Fed Missed - Real Time Economics - WSJ

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  2. neurosport
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    neurosport BANNED

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    he's right about one thing: creativity on part of finaciers leads to more debt.

    how stupid do they think we are ? wake up and smell the conspiracy.

    everybody knew Saddam had nothing to do with 911 and everybody saw the bubble.

    they had plans for the middle east before 911 and they had plans for "handling" this crisis as well long before it actually happened.

    that's the funniest thing about this collapse - they kept denying that it is even possible while it was forming to the point where it was up in everybody's face and then the second they finally admit its real - magically - they already have a solution prepared !

    problem - reaction - solution

    so they were completely clueless the second before it happened and a second after - they know everything !

    same shit with 911 - they were supposedly completely clueless up until the second airplane hit ( had plenty of time to act while the planes were in the air but did nothing, also had all the warnings you may dream about before 911 and also did nothing ) and then as soon as the towers went down they immediately proclaimed they knew who done it !

    in fact no investigation was even necessary - they just knew it was Saddam ...

    the pattern is hard to miss.

    this crisis is a financial 911 = inside job by the FED
     
    Last edited: Apr 18, 2009
  3. garyd
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    garyd Senior Member

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    Mr. Kaufman got it wrong of course like many others. The housing industry triggered this and the housing industry was driven almost entirely by the need to find more and more customers for bigger and more costly homes because state and local regulations virtually compelled such homes to be built at the expense of smaller cheaper homes.
     
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  4. thinking
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    thinking Rookie

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    Regulation is definitely the key to a more recession proof economy. After the financial reforms of the New Deal, America didn't have any MAJOR economic collapses. Granted, there were still downturns, but no major bank failures like we are experiencing today. We need to stop having the naive belief that the economy regulates itself, the massive problems we are seeing right now are because we let the economy regulate itself.
     
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  5. garyd
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    garyd Senior Member

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    Um 1935, 1937, 1946, 1960-61? The only things driving the economy thoughout the fifties was a housing boom that laid the foundation for the current crisis as more Americans than ever before moved from inner city Apartments to the suburbs, and defense spending which at that time was about 70% or more of the federal budget.
     
  6. KittenKoder
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    KittenKoder Senior Member

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    Regulation just means it's harder for small business to get started, get going, and stay strong. It drives the costs of licensing up and increases the red tape. It's not as good an idea as people think, it only looks good if you ignore most of it's effects, if you know more of the effects you will see it's a bad idea. Actually, it is part of the reason so much of our economy has become dependent on only a few companies, thus why when one of those companies fails ... it hurts.
     
  7. garyd
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    garyd Senior Member

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    Exactly kit. In fact that's another reason all the biggies have lobbyists- to make sure that the regulations they do have to put up with hamper competition as much as possible.
     
  8. KittenKoder
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    KittenKoder Senior Member

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    Pretty much, over regulation puts control in the big companies and does not protect anyone. I just wish the other lefties could think more ... if they would at least look at all the angles more. I feel more alone in my own political alignment every day.
     
  9. sealybobo
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    sealybobo Diamond Member

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    We need to abolish the Federal Reserve. Take it back from the rich bankers that own it. Yes, OWN it. Some of them aren't even American. In 1913 Rockafellor, JP Morgan & couple other rich dudes bribed congress to let them take over the Federal Reserve. Today its a QUASI private/governmental org. But no one knows exactly how much power the private bankers actually have in making decisions. I remember last year the Fed Res. gave AIG the first bailout without even going through Congress. That's too much power.

    Anyways, just like I believe the GOP and Corporate America purposely fucked up the last 8 years so they could bleed the treasury dry, I also believe the Federal Reserve is in on it. They may even be the masterminds behind it. The plan? Socialize all the losses and privatize all the profits. So look back and see the CEO's pay skyrocketed in the last few years, while the system got more and more unstable. Next thing you know the economy crashed and now all the corporations and banks are getting tax payers money?

    And all these corporations are going bankrupt so they can renig on pensions.

    Its called Desaster Capitalism.

    The GOP went way too far deregulating everything. Who asked them to do that? Could it be Bank & Corporate lobbyists?

    Just like people want to blame the Democrats for NAFTA because Bill Clinton signed it. Well who came up with NAFTA? Who's benefitting from NAFTA? Who defends NAFTA today? Who made changes to NAFTA after Clinton was out of office that made it even worse for American workers? It sure seems like the answer is the GOP and Corporations.

    It sure isn't the middle class. We aren't benefitting from any of this.
     
  10. jillian
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    jillian Princess Supporting Member

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    Regulation means the consumer is assured of certain minimal standards and the shell game that was the last eight years with derivatives wouldn't have happened.

    I really can't for the life of me understand the mentality of people who say here... "just rip me off all you want".

    it's going against your own self-interest. we've already SEEN the result.. and yet are still concerned that corporations should rape us as much as they can. And you KNOW most of the people who are so terrified that banks might be regulated are the ones who would have benefitted from it most. I DON'T GET IT!

    Corporations are not moral... they are amoral... they operate SOLELY IN THEIR OWN SELF-INTEREST.

    Why is this so complicated?

    :cuckoo::cuckoo::cuckoo:
     

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