Obama Treasury Appointee Jack Lew: "Deregulation Didn't Cause the Financial Crisis"

You mean, removing rules that separated Investment Banks from Savings Banks DIDN'T cause the meldown?

I know you Liberals must be furious!

HuffPo from 2010, updated 2011:
Jacob Lew, Obama Nominee And Former Citigroup Executive, Doesn't Believe Deregulation Led To Financial Crisis

Let's look up "proximate cause" shall we?
Proximate cause - Wikipedia, the free encyclopedia

So he says that Banks had problems BEFORE deregulation AND that the deregulation WASN'T the main driving cause of the Economic Meltdown!

And that means Obama doesn't believe it either because he nominated him!

 

Shocking I say.. SHOCKING!!!

 

I think I need to take a dump on receiving that news.

 

TruthMatters is probably in such a full blown meltdown she can not even post.

 

Possibly that much of the Federal government regulated the housing market to get people into homes the free market said they could not afford had something to do with it?

And possibly the Fed regulating the money supply to stimulate the housing market and economy had something to do with it?

 

That isnt quite the same thing as saying deregulation wasnt a problem, he just said the financial sector already had big problems to begin with. Its like getting in a traffic accident with a car that already has nicks and dings all over it, that you didnt cause "all" the damage doesnt belie the fact that you caused damage, nor does it magically make the damage you caused into a boon.

 

REgulation was the problem: Possibly that much of the Federal government regulated the housing market to get people into homes the free market said they could not afford had something to do with it?

And possibly the Fed regulating the money supply to stimulate the housing market and economy had something to do with it?

 

You have to define deregulation as forcing banks to lend to subprime borrowers

 

Banks wernt forced, they got to choose their own level of risk, but once they made it a habit of loaning to people with a certain amount of risk, they had to loan to everyone with the same amount of risk regardless of their ethnicity.

When regulations were loosened, banks discovered they could sell trash loans as if they were triple A rated with impunity, and so they went out and created as many trash loans as they could, which crashed the world economy.

 

Not many people from the financial community will pin the problems directly on deregulation..and they will point to disparate factors that led to the issues that caused the meltdown.

Doesn't mean they don't believe in regulation of some sort.

They just hate calling it that.