How Deregulation Lead to the Financial Crisis

[Truthmatters]

And in those years we had Glass Steagal which protected us against these markets getting overheated and creating a depression.

Now that its gone it turned into this mess instead of being just a recession.

Elizabeth Warren is overseeing the TARP funds. She explained it best on the Daily Show.

Before the Great Depression, our economy went like a roller coaster ride every 10 years. (Good luck with this if you have a 401K). So they put in Regulations and we had a good 50 years of slow steady growth, but no crashes or major problems. Then Reagan got in, and he removed regulations, and then the S&L collapse of the 80's came and then we find out Enron is cooking the books in 2001 until the entire thing collapsed.

She's not giving you an opinion. She's telling you the facts on what happened. And she explained it like any moron could understand.

So truth, why don't these moron's get it?

I think Glass-Segal was repealed during the Clinton administration, with bi-partisan support of both parties.

Yes it was , it had been hacked at for years and then finnaly killed by Gramm leach Bliely act 1999 which Phil Gramm worked on hard for years. Clinton then signed it and is an asshole for doing so. Every Dem who voted for it is an asshole and got duped and or bought by the lending industry.

Now look who is fighting any kind of new regulations.

those will be the people you dont wnat to vote for no matter what party they are a part of.


Deregulation has been the baby of the republican party for decades and every time they win in getting it passed we get fucked.

 

[sealybobo]

Elizabeth Warren is overseeing the TARP funds. She explained it best on the Daily Show.

Before the Great Depression, our economy went like a roller coaster ride every 10 years. (Good luck with this if you have a 401K). So they put in Regulations and we had a good 50 years of slow steady growth, but no crashes or major problems. Then Reagan got in, and he removed regulations, and then the S&L collapse of the 80's came and then we find out Enron is cooking the books in 2001 until the entire thing collapsed.

She's not giving you an opinion. She's telling you the facts on what happened. And she explained it like any moron could understand.

So truth, why don't these moron's get it?

I think Glass-Segal was repealed during the Clinton administration, with bi-partisan support of both parties.

Yes it was , it had been hacked at for years and then finnaly killed by Gramm leach Bliely act 1999 which Phil Gramm worked on hard for years. Clinton then signed it and is an asshole for doing so. Every Dem who voted for it is an asshole and got duped and or bought by the lending industry.

Now look who is fighting any kind of new regulations.

those will be the people you dont wnat to vote for no matter what party they are a part of.


Deregulation has been the baby of the republican party for decades and every time they win in getting it passed we get fucked.

That's what I'm saying. Righties want to blame Dems as much as Reps for things like NAFTA but then, which party gets angry anytime you ever mention making changes to NAFTA.

So sure, there are Democrats that can be bribed to go along, but overall the GOP are the ones who really defend NAFTA and leaving it the way it is.

Same with Healthcare Reform. Mark my words. WHen it doesn't pass, they'll point to Chris Dodd and say, "see, dems are just as bad". But we know that it is the GOP that like our healthcare the way it is now.

 

[Truthmatters]

what is now left of the republican party leadership is some not too decent people.

They will do and say anything.

When I was a child they were smart and principled.

That party no longer exsists and the really sad part is no one cares to make it great again.

 

[KittenKoder]

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.

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?

Okay, we'll take it from that angle.

One of the problems with regulation, we can call it an unintended consequence but I see it all the time, is that we have taken common sense from the consumers. I remember when my father went to buy a fridge (just an example here) and he looked at everything, including considering how he would pay for it, if he needed to borrow money and how much, how quickly he could pay that back if he had to. Then he would go further, look into what the consumer reviews were (yes, even before the internet he did this research) and what company made it, what their safety record was like, if the fridge met our needs, details. Yes, all for a fridge. When he bought us kids anything he did almost the same thing, weighing dangers and risks. These days most consumers just look at how it looks and maybe, maybe, consider the financial burden, expecting there to be someone to bail them out if they make a mistake. I myself, when I buy a computer, it takes me months to decide when I am buying one, unless I am looking for junk parts then I don't care as much before spending the money. My primary computer, took me three months to find, got a GREAT price, it's a strong machine, and has everything I need or want with only a couple upgrades since I got it. Didn't want a loan, so I didn't even consider it. It's time to stop taking the responsibility from one and shifting the burden to another, we are ALL responsible, not just banks or any other company, the consumers are responsible to. Companies now dress their products up more than focus on making them useful now because of all this regulation. American made just sucks now, it's more about the packaging.

 

[Truthmatters]

How does it hurt anything to make regulations that keep the banking system from screwing people?

Lets just remember that some pretty smart peopel got hurt by this mess including peopel like your Dad who did NOTHING wrong but lost their jobs and then their homes because of the mess.

Your dad likely lived through the depression and new the value of a dollar. Do you think he would curse the people who did nothing wrong yet lost everything anyway?

 

[thinking]

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.

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?

Okay, we'll take it from that angle.

One of the problems with regulation, we can call it an unintended consequence but I see it all the time, is that we have taken common sense from the consumers. I remember when my father went to buy a fridge (just an example here) and he looked at everything, including considering how he would pay for it, if he needed to borrow money and how much, how quickly he could pay that back if he had to. Then he would go further, look into what the consumer reviews were (yes, even before the internet he did this research) and what company made it, what their safety record was like, if the fridge met our needs, details. Yes, all for a fridge. When he bought us kids anything he did almost the same thing, weighing dangers and risks. These days most consumers just look at how it looks and maybe, maybe, consider the financial burden, expecting there to be someone to bail them out if they make a mistake. I myself, when I buy a computer, it takes me months to decide when I am buying one, unless I am looking for junk parts then I don't care as much before spending the money. My primary computer, took me three months to find, got a GREAT price, it's a strong machine, and has everything I need or want with only a couple upgrades since I got it. Didn't want a loan, so I didn't even consider it. It's time to stop taking the responsibility from one and shifting the burden to another, we are ALL responsible, not just banks or any other company, the consumers are responsible to. Companies now dress their products up more than focus on making them useful now because of all this regulation. American made just sucks now, it's more about the packaging.

The masses are asses, we need regulation yes I am an ass . Whats wrong with making it impossible for everybody to do really stupid things, like going into excessive amounts of debt they can't ever possibly pay back.

 

[midcan5]

"The sun shone, having no alternative, on the nothing new." Beckett

http://www.usmessageboard.com/economy/72375-balanced-piece-on-meltdown.html

and

"Iceland’s de facto bankruptcy—its currency (the krona) is kaput, its debt is 850 percent of G.D.P., its people are hoarding food and cash and blowing up their new Range Rovers for the insurance—resulted from a stunning collective madness. What led a tiny fishing nation, population 300,000, to decide, around 2003, to re-invent itself as a global financial power? In Reykjavík, where men are men, and the women seem to have completely given up on them, the author follows the peculiarly Icelandic logic behind the meltdown." Michael Lewis

Wall Street on the Tundra | vanityfair.com

The End of Wall Street's Boom - National Business News - Portfolio.com

 

[garyd]

Glass steagall was anti trust legislation nim rod go actually read the damn thing. All it really did was put another set of rules and regulations over and above the rules and regualtions that covered mergers of other business entities in place for banks and other lending institutions. Glass-Steagal for instance did not prevent the collapse of the S&L's caused almost entirely by Democratic congressional legislation that was shoved down Reagans throat in 1986.