I like Obama and I'm most likely voting for him, but he was on the team (w/ the Clintons) that's partly to blame for this big mess.
http://www.youtube.com/watch?v=ivmL-lXNy64
NINJA loans made me cry. No income, no job or assets = APPROVED!
http://www.youtube.com/watch?v=ivmL-lXNy64
NINJA loans made me cry. No income, no job or assets = APPROVED!
The housing market was just a convenient place to dump all the excess credit, had that not been doable the investment banks would have just found some other sector to lend to, problem would still have occurred.
The danger in talking about "deregulation" as the problem is that it makes it sound as if we can solve it for the future just by putting more regulations in place. Unless the new regulations are exactly the right ones, it'll only create new problems.
3 of the 5 companies that were allowed to do this have now sunk, the proof is in the pudding.
ACTUAL banks, the kind that take deposits and are regulated by the FDIC, have always been under strict capital adequacy rules and regulations, and can be taken over by the FDIC if they let their capital ratios fall below a certain threshold (this is the regime that the big investment banks have been put under by becoming bank holding companies or being bought by them).
It irks me when people so self-righteously blame "deregulation" for the crisis when they so obviously don't have a shred of knowledge about what they are talking about.
Citation please. And excuse me, but I do believe that even knowing about the 15:1 to 40:1 change, does qualify as a shred of knowledge.
It's not my responsibility to chase down the sources of other people's irrelevant points.
This is merely political spin that nobody is seriously buying. The game's up. The excesses absolutely rampant in an unregulated, financial industry (and in business in general) is the cause of almost all of this mess. Using unsecured real estate paper en masse in a shell game to leverage extremely unethical, naked derivatves bets was a wonderful game while it worked, and banks and the slimy MBAs who run them lived high for a while, then parachuted out rich.
Masters of the universe, I think they called themselves, right?
Republicans have had eight years, six of those with both the presidency and more of those years prior to 2000 in control of the legislature It was profitable to them and theirs to deregulate, and they did it with a vengeance. Now many of the fundamental flaws of unregulated capitalism return to roost for the thousandth time. Capitalism doesn't really allow for the simple truths that we are all interconnected, what harms you almost always comes back to harm me, and bad decisions eventually harm all of us. And here we are, watching credit dry up and the DOW plummet again on a Friday afternoon, looking downstream at a horrible impact on an entire generation of young people, brought about by the greed of a few.
Cooperation, codified via sensible regulation, is always a higher good than competition.
That doesn't sound like a deregulation problem to me, it sounds like a mis-configured regulatory system.
"Models" have nothing to do with regulation, or with the lack of ethics that has brought us to this point, other than the curious coincidence that these "models" supported and aligned so well with unbridled greed.
People are stupid, but they're not (usually) deliberately self-destructive.