Why no "Banking Crisis" from 1935 to 1979

[rdean]

Watching this table discussion on "Banking Crisis" and they put up some unusual statistics.

From 1935 to 1979, the time spent in "Banking Crisis" was 0.9% because the banks were highly regulated. Seems people still remembered the "Great Depression" and the cause.

Since 1980, the world has spent 19.9% of the time in Banking Crisis. From the Latin America Debt Crisis to the European Crisis to the latest American Crisis and all the ones in between.

All because of the conservative policies of "Bank Deregulation".

In fact, they pointed out that the economies that did well were the ones were banks were highly regulated.

Is this true?

 

[Billo_Really]

Watching this table discussion on "Banking Crisis" and they put up some unusual statistics.

From 1935 to 1979, the time spent in "Banking Crisis" was 0.9% because the banks were highly regulated. Seems people still remembered the "Great Depression" and the cause.

Since 1980, the world has spent 19.9% of the time in Banking Crisis. From the Latin America Debt Crisis to the European Crisis to the latest American Crisis and all the ones in between.

All because of the conservative policies of "Bank Deregulation".

In fact, they pointed out that the economies that did well were the ones were banks were highly regulated.

Is this true?

Why?

I got two words for you....................Glass-Steegal.

 

[JimmieD]

The lack of banking crises was probably mostly due to deposit insurance. With that insurance there is no need to run on the bank. Institutional baking today doesn't have the equivalent of deposit insurance, so at times there will be institutional bank runs on each other.

 

[Leowis1]

I think there was no banking crisis up to 2008. Credit swap defaults and derivatives allowed banks to underwrite and hide their liabilities. Everybody was leveraged to the eye balls. Now we're going through a period of building reserves and deleveraging. This is why we have no growth and companies have a lot of money.

 

[Michelle420]

Watching this table discussion on "Banking Crisis" and they put up some unusual statistics.

From 1935 to 1979, the time spent in "Banking Crisis" was 0.9% because the banks were highly regulated. Seems people still remembered the "Great Depression" and the cause.

Since 1980, the world has spent 19.9% of the time in Banking Crisis. From the Latin America Debt Crisis to the European Crisis to the latest American Crisis and all the ones in between.

All because of the conservative policies of "Bank Deregulation".

In fact, they pointed out that the economies that did well were the ones were banks were highly regulated.

Is this true?

Sure, when departments are regulated they are held under an accountability.

 

[william the wie]

What about the 1975 S&L bank runs, the slow roll bank runs that led to Kennedy's Interest Equalization Tax or for that matter the rise of the Euro dollar market in the 1950s to prevent bank runs?

 

[EdwardBaiamonte]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

 

[t_polkow]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

So in 1935 Fanny Freddie were programs?

Outta the gene pool!!

 

[CrusaderFrank]

It's Rdean stupid, that's how bad it is

 

[CrusaderFrank]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

So in 1935 Fanny Freddie were programs?

Outta the gene pool!!

What are Fannie and Freddie?

When did they each start?

What do they each do?

 

[EdwardBaiamonte]

It's Rdean stupid, that's how bad it is

yes, he was watching a socialist TV show, had no idea it was a socialist show so thought he had some great arguments

 

[Mad Scientist]

I'm glad to see even the hard core Democrats like rDean beginning to understand who the real Masters of this country are: Bankers.

 

[CrusaderFrank]

What are Fannie and Freddie?

Government Sponsored entities, they carry an implicit guarantee of the Federal government

When did they each start?

FMNA 1938
Freddie Mac 1970

What do they each do?

Um, well, they like, provide liquidity to the housing market

How many people work there?

They each employ 5,000 people

Um, why do we need 2 capital sucking 5,000 person agencies with the same mission?

[ame=http://www.youtube.com/watch?v=K8E_zMLCRNg]Cricket Sound - YouTube[/ame]

 

[Billo_Really]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

What's even more stupid is I didn't say that!

That's not my quote, dumbass!

 

[EdwardBaiamonte]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

What's even more stupid is I didn't say that!

That's not my quote, dumbass!

sorry, it seemed perfectly consistent with your level of political intelligence. You're one step of deanie boy

 

[tjvh]

Watching this table discussion on "Banking Crisis" and they put up some unusual statistics.

From 1935 to 1979, the time spent in "Banking Crisis" was 0.9% because the banks were highly regulated. Seems people still remembered the "Great Depression" and the cause.

Since 1980, the world has spent 19.9% of the time in Banking Crisis. From the Latin America Debt Crisis to the European Crisis to the latest American Crisis and all the ones in between.

All because of the conservative policies of "Bank Deregulation".

In fact, they pointed out that the economies that did well were the ones were banks were highly regulated.

Is this true?

Interesting that executive order #6102 (which made private ownership of Gold illegal) fits that timeline nearly perfectly... Coincidence?

 

[CrusaderFrank]

Remember when Reagan and his Republican Congress lead by Jim Wright totally deregulated banks in 1979?

 

[rdean]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

For six years, Bush and the Republicans controlled all three branches of government. That was when "Freddie/Fannie" were at their height. Then there were the "temporary tax cuts", the two unpaid for wars, the drugs for votes bill, deregulation, many trillions in debt and on and on. If Republicans block everything Democrats try to do now, how did Democrats have so much power then? Short answer: They didn't. You need to try again from a different angle.

 

[Oddball]

All because of the conservative policies of "Bank Deregulation".

actually that is stupid beyond words and perfectly liberal!!

Fed Fanny Freddie CRA FHA FDIC are were 100% busy and huge regulators at the time of the housing collapse.

That anyone would ignore this is worse than pure Nazi propaganda and double think!!

For six years, Bush and the Republicans controlled all three branches of government. That was when "Freddie/Fannie" were at their height. Then there were the "temporary tax cuts", the two unpaid for wars, the drugs for votes bill, deregulation, many trillions in debt and on and on. If Republicans block everything Democrats try to do now, how did Democrats have so much power then? Short answer: They didn't. You need to try again from a different angle.

Which deregulation?

Please be specific.

 

[Billo_Really]

sorry, it seemed perfectly consistent with your level of political intelligence. You're one step of deanie boy

On a scale of intelligence, you don't really set the bar all that high.