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

Discussion in 'Economy' started by Mad Scientist, Jan 10, 2013.

  1. Mad Scientist
    Offline

    Mad Scientist Feels Good!

    Joined:
    Sep 15, 2008
    Messages:
    24,196
    Thanks Received:
    5,260
    Trophy Points:
    270
    Ratings:
    +8,156
    You mean, removing rules that separated Investment Banks from Savings Banks DIDN'T cause the meldown? :confused:

    I know you Liberals must be furious! :mad:

    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!

    :rofl::rofl::rofl:
     
  2. Soggy in NOLA
    Offline

    Soggy in NOLA Platinum Member

    Joined:
    Jul 31, 2009
    Messages:
    37,253
    Thanks Received:
    4,915
    Trophy Points:
    1,130
    Ratings:
    +15,806
    Shocking I say.. SHOCKING!!!
     
  3. Moonglow
    Offline

    Moonglow Diamond Member

    Joined:
    Jun 27, 2011
    Messages:
    101,214
    Thanks Received:
    9,615
    Trophy Points:
    2,070
    Location:
    sw mizzouri
    Ratings:
    +41,268
    I think I need to take a dump on receiving that news.
     
  4. TakeAStepBack
    Offline

    TakeAStepBack Gold Member

    Joined:
    Mar 29, 2011
    Messages:
    13,935
    Thanks Received:
    1,725
    Trophy Points:
    245
    Ratings:
    +2,018
    TruthMatters is probably in such a full blown meltdown she can not even post.
     
  5. EdwardBaiamonte
    Offline

    EdwardBaiamonte Platinum Member

    Joined:
    Nov 23, 2011
    Messages:
    30,943
    Thanks Received:
    1,275
    Trophy Points:
    1,080
    Ratings:
    +3,958
    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?
     
  6. ReallyMeow
    Offline

    ReallyMeow Member

    Joined:
    Jan 16, 2013
    Messages:
    239
    Thanks Received:
    18
    Trophy Points:
    16
    Ratings:
    +18
    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.
     
  7. EdwardBaiamonte
    Offline

    EdwardBaiamonte Platinum Member

    Joined:
    Nov 23, 2011
    Messages:
    30,943
    Thanks Received:
    1,275
    Trophy Points:
    1,080
    Ratings:
    +3,958
    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?
     
  8. CrusaderFrank
    Offline

    CrusaderFrank Diamond Member

    Joined:
    May 20, 2009
    Messages:
    89,088
    Thanks Received:
    16,281
    Trophy Points:
    2,220
    Location:
    NYC
    Ratings:
    +48,687
    You have to define deregulation as forcing banks to lend to subprime borrowers
     
  9. ReallyMeow
    Offline

    ReallyMeow Member

    Joined:
    Jan 16, 2013
    Messages:
    239
    Thanks Received:
    18
    Trophy Points:
    16
    Ratings:
    +18
    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.
     
  10. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,533
    Thanks Received:
    6,135
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,400
    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. :eusa_shifty:

    They just hate calling it that.

    :D
     

Share This Page