Liberals what de regulation did bush do to cause the housing crises?

Discussion in 'Politics' started by JRK, Mar 25, 2011.

  1. JRK
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    JRK Senior Member

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    The event that created the sub prime mortgage world, but more importantly the mortgage becoming a diravitive was signed into law 11/12/1999. an event that I agreed with, greed took the event and has caused the pain, not Clinton
    But to blame W for this is sick

    Clinton repeal of Glass-Steagall faulty as seen today
    Written on March 17th, 2008 in Government Positions


    This is just one of our articles referencing the financial crisis, crash of the housing market, subprime, and more:


    Even as the Fed helped to stabilize the situation over the weekend, the stock market is down again on Monday morning. What is alarming from our standpoint is that CIT, Lehman, and National City Corporation all are down – by 25 to 31 percent as we write this. Liquidity questions surround Lehman after what we learned from Bear Sterns. Even JPMorgan needed help and considerations from the Fed to buy Bear Sterns for a reported $2 a share.

    This issue now goes far beyond the mortgage blues of some lenders. There is no way that crazy wild-eyed mortgage brokers with lax standards could cause worldwide problems like this. President Bill Clinton repealed the Glass-Steagall Act which had prevented the coupling of investment banking and lending. To be exact, on November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal is it allowed commercial and investment banks to consolidate. Economists have criticized the action.

    Of course economists criticized the way in which the Bush administration manufactured money by allowing anybody and everybody the opportunity to buy or refinance homes. Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.
     
  2. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Bush wasn't a legislative "de-regulator", he was one that gutted the agencies that oversaw regulation. Additionally he appointed people to head these agencies that either had no idea what they were doing, or looked the other way while some very serious calamities were in the works.
     
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  3. waltky
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    waltky Wise ol' monkey Supporting Member

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    Caveat: Consider the source...
    :eusa_eh:
    Freddie Mac Predicts Housing Rebound
    April 15, 2011 — Apparently, not all is lost for the housing market. Freddie Mac just released a report penned by chief economist Frank Nothaft that paints a hopeful picture of the housing market just in time for the spring selling season.
    See also:

    Suicide Rate Tied to Economy, CDC Says
    April 18, 2011 — The suicide rate is strongly linked to the health of the economy, according to new research from the Centers for Disease Control and Prevention.
     
    Last edited: Apr 18, 2011
  4. Cuyo
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    Cuyo Training a Guineapig army

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    None. The lions' share of the responsible firms were never regulated to begin with.

    Bush, Greenspan, et al were warned. Said firms needed to be regulated, and the fed was remiss in making it so.
     
  5. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny wantin' to know if dis means its gonna be a while a-fore she gets her second stimulus check?...
    :confused:
    IRS snafu leaves taxpayers, refunds in limbo for months
    It's perhaps the very definition of Red Tape. Four years ago, Congress decided that the IRS should get into the banking business, authorizing it to give out no-interest loans to first-time homebuyers. That put the agency in the position of both collecting loan payments and issuing tax refunds to the roughly 1 million taxpayers who took advantage of the program.

     
  6. Publius1787
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    Publius1787 Gold Member

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    The only video I need to post.

    [ame=http://www.youtube.com/watch?v=_MGT_cSi7Rs]YouTube - ‪Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis‬‏[/ame]
     
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  7. Charles_Main
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    Charles_Main AR15 Owner

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    It is laughable to attempt to place all the blame for a collapse that was 30 years in the making. On any one man. Stupid.
     
  8. NYcarbineer
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    NYcarbineer Diamond Member

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    The housing bubble was caused by easy credit which was caused by Wall Street snapping up every mortgage it could get its hands on to package and sell. The public was convinced that property values could only go up, just like the public was convinced in 99, 00 that stock prices could only go up.
     
  9. Epsilon Delta
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    There were many causes for the collapse and also many causes for the unability to deal with the collapse. Clinton was responsible for the repeal of Glass-Steagle, which was instrumental in keeping things in line since the end of the Depression, his buddy Greenspan was partly responsible for waves of easy credit ("Greenspan put") and total refusal to see or burst the bubble. Bush was responsible for squandering the surplus on tax cuts and the military, making the US incapable of stimulating the economy once the crisis arrived. Meanwhile, the idea of "self-regulation" for financial businesses was embraced across partisan lines, as well as the propensity to appointing regulators who were high-ranking officials of the very institutions they were meant to regulate. The entire economics profession was brutally silent in the face of the 8-trillion dollar bubble, as were the journalists. THe American people's massive appetite for unbridled consumption and abstention from saving catalyzed everything, while people from investment-hungry places like China and Saudi Arabia kept feeding them debt.

    So no, there is no one person: It is the entire system that is fucked.
     
  10. Toro
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    There were a few things.

    First, the SEC waved rules which barred the big five Wall Street firms from exceeding stated debt levels. The Big Five argued they could better regulate themselves than the government. Lehman went under, Bear collapsed, Merrill no longer exists as an independent company, Morgan was probably bankrupt and Goldman was rumored to be days away from collapsing. So much for the market regulating itself.

    The Federal Reserve refused to enforce regulations on subprime loans, even though they'd been warned what was happening.

    Also, one of the federal regulators - I can't remember which one, the Fed, OFHEO? - barred states AGs from bringing charges for predatory lending against nationally chartered banks, allowing banks to sell all sorts of inappropriate shit to unqualified consumers.

    But this wasn't just a Bush/Republican thing. Clinton and the Democrats sowed the seeds by deregulating derivatives and barring any federal oversight. Like the Wall Street firms, Enron paid a whole lot of money to exempt themselves from much regulatory oversight. And like Wall Street, Enron imploded.
     
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