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

[Mad Scientist]

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

asked Thursday during his confirmation hearing before the Senate Budget Committee by Sen. Bernie Sanders whether he believed that the "deregulation of Wall Street, pushed by people like Alan Greenspan and Robert Rubin, contributed significantly to the disaster we saw on Wall Street."

Lew, a former OMB chief for President Bill Clinton, told the panel that "the problems in the financial industry preceded deregulation," and after discussing those issues, added that he didn't "personally know the extent to which deregulation drove it, but I don't believe that deregulation was the proximate cause."

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

There is a second test used to determine if an action is close enough to a harm in a "chain of events" to be a legally culpable cause of the harm. This test is called proximate cause.

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!

 

[Soggy in NOLA]

Shocking I say.. SHOCKING!!!

 

[Moonglow]

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

 

[TakeAStepBack]

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

 

[EdwardBaiamonte]

deregulation WASN'T the main driving cause of the Economic Meltdown!

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?

 

[ReallyMeow]

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.

 

[EdwardBaiamonte]

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?

 

[CrusaderFrank]

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

 

[ReallyMeow]

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.

 

[Sallow]

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

asked Thursday during his confirmation hearing before the Senate Budget Committee by Sen. Bernie Sanders whether he believed that the "deregulation of Wall Street, pushed by people like Alan Greenspan and Robert Rubin, contributed significantly to the disaster we saw on Wall Street."

Lew, a former OMB chief for President Bill Clinton, told the panel that "the problems in the financial industry preceded deregulation," and after discussing those issues, added that he didn't "personally know the extent to which deregulation drove it, but I don't believe that deregulation was the proximate cause."

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

There is a second test used to determine if an action is close enough to a harm in a "chain of events" to be a legally culpable cause of the harm. This test is called proximate cause.

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!

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.

 

[Sallow]

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.

Basically the CRA eliminated the practice of redlining.

And it wasn't really the "banks" per se that were making sub prime loans. A cottage industry of loan agencies backed by financial corporations entered the market. And those were the loans that were bundled into the securities that led to the crash.

 

[Sallow]

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

That never happened.

It's a conservative myth meant to put the blame on black and brown people.

 

[ReallyMeow]

And it wasn't really the "banks" per se that were making sub prime loans. A cottage industry of loan agencies backed by financial corporations entered the market. And those were the loans that were bundled into the securities that led to the crash.

Yup, they had to work together to commit fraud on such a massive scale.

 

[EdwardBaiamonte]

And it wasn't really the "banks" per se that were making sub prime loans. A cottage industry of loan agencies backed by financial corporations entered the market. And those were the loans that were bundled into the securities that led to the crash.

Yup, they had to work together to commit fraud on such a massive scale.

dear, you need money to buy houses. The Fed printed the money to stimulate the housing market!! Do you think the Girl Scouts printed the money to bake cookies or that the Fed did so we could buy houses. Also, to make sure everyone could afford the homes Fan/Fred either bought or guaranteed the mortgages as part of a liberal program to get people into homes the Republican free market said they could not afford.

See why we are positive a liberal will be slow??

 

[ReallyMeow]

And it wasn't really the "banks" per se that were making sub prime loans. A cottage industry of loan agencies backed by financial corporations entered the market. And those were the loans that were bundled into the securities that led to the crash.

Yup, they had to work together to commit fraud on such a massive scale.

dear, you need money to buy houses. The Fed printed the money to stimulate the housing market!! Do you think the Girl Scouts printed the money to bake cookies or that the Fed did so we could buy houses. Also, to make sure everyone could afford the homes Fan/Fred either bought or guaranteed the mortgages as part of a liberal program to get people into homes the Republican free market said they could not afford.

See why we are positive a liberal will be slow??

Thats a program that had been running for decades without any problems, it is only when regulation was gutted that people started lying like they could get away with it. Dont forget that bush is also the one that made the fed, hud, fannie and freddy all work together to expand home ownership; quite radically at that, 5 trillion dollars is alot of money.

Subprime mortgage crisis - Wikipedia, the free encyclopedia

 

[EdwardBaiamonte]

Thats a program that had been running for decades without any problems,

dear, problems build, in this case after 9/11 there was tremendous pressure to bubble up the housing market which the liberals kept doing until the bubble burst. Decades ago there was no bubble because the Fed was not printing enough money to make it possible!!

Got it now, the bubble was bad before the crash not decades ago!!

 

[EdwardBaiamonte]

Dont forget that bush is also the one that made the fed, hud, fannie and freddy all work together to expand home ownership; quite radically at that, 5 trillion dollars is alot of money.

so what ????IF he did he wasn't acting as a conservative Republican, libertarian Republican, Tea Party Republican, or Jefferson Republican.
IS that really over your head??

 

[ReallyMeow]

Thats a program that had been running for decades without any problems,

dear, problems build, in this case after 9/11 there was tremendous pressure to bubble up the housing market which the liberals kept doing until the bubble burst. Decades ago there was no bubble because the Fed was not printing enough money to make it possible!!

Got it now, the bubble was bad before the crash not decades ago!!

Whose bright idea was that? bush's.

Dont forget that bush is also the one that made the fed, hud, fannie and freddy all work together to expand home ownership; quite radically at that, 5 trillion dollars is alot of money.

so what ????IF he did he wasn't acting as a conservative Republican, libertarian Republican, Tea Party Republican, or Jefferson Republican.
IS that really over your head??

No matter how much you wipe your shoe on the doormat, you still stepped in dog doo. Its not the intention of wanting to put people into homes, its the method which republicans went about it which resulted in such a spectacular failure.

 

[Sallow]

And it wasn't really the "banks" per se that were making sub prime loans. A cottage industry of loan agencies backed by financial corporations entered the market. And those were the loans that were bundled into the securities that led to the crash.

Yup, they had to work together to commit fraud on such a massive scale.

dear, you need money to buy houses. The Fed printed the money to stimulate the housing market!! Do you think the Girl Scouts printed the money to bake cookies or that the Fed did so we could buy houses. Also, to make sure everyone could afford the homes Fan/Fred either bought or guaranteed the mortgages as part of a liberal program to get people into homes the Republican free market said they could not afford.

See why we are positive a liberal will be slow??

Seriously..do even know what you are talking about?

Bush came into office at the tail end of a pretty soft recession and a surplus. Instead of paying down debt, he decided the government had to much money and rammed through a huge tax cut for the wealthy noting it would rev up the economy. He also dropped interest rates to zero. This started the housing bubble, chief. Lots of cheap money.

And there's another shoe to that. Bush encouraged everyone to raid their "equity" piggy bank and start businesses..

 

[EdwardBaiamonte]

Yup, they had to work together to commit fraud on such a massive scale.

dear, you need money to buy houses. The Fed printed the money to stimulate the housing market!! Do you think the Girl Scouts printed the money to bake cookies or that the Fed did so we could buy houses. Also, to make sure everyone could afford the homes Fan/Fred either bought or guaranteed the mortgages as part of a liberal program to get people into homes the Republican free market said they could not afford.

See why we are positive a liberal will be slow??

Seriously..do even know what you are talking about?

Bush came into office at the tail end of a pretty soft recession and a surplus. Instead of paying down debt, he decided the government had to much money and rammed through a huge tax cut for the wealthy noting it would rev up the economy. He also dropped interest rates to zero. This started the housing bubble, chief. Lots of cheap money.

And there's another shoe to that. Bush encouraged everyone to raid their "equity" piggy bank and start businesses..

dear, you said the banks caused the crash, I explained to you it was Fed Fan Fred, and then you changed the subject to Bush as if no one would notice.

Did you fool yourself again????