View Full Version : The father of all economical fuck-ups: Gramm–Leach–Bliley Act
Many, including myself and Barack Obama, believe that this act (http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act) is the reason why we have this financial dilemma currently. We can blame Bill Clinton for that, for repealing parts of the Glass–Steagall Act (http://en.wikipedia.org/wiki/Glass-Steagall_Act) of 1933.
The repeal of the Glass–Steagall Act of 1933 effectively removed the separation that previously existed between Wall Street investment banks and depository banks and has been blamed by some for exacerbating the damage caused by the collapse of the subprime mortgage market that led to the Financial crisis of 2007–2010.
President Barack Obama believes that the Act directly helped cause the 2007 subprime mortgage financial crisis
11-21-2010, 11:12 AM
The FDIC (http://www.law.cornell.edu/uscode/12/usc_sup_01_12_10_16.html)-related provisions of the "Financial Services Modernization Act (http://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bliley_Act)", along with the addition of sub-section § 2903(c) (http://www.law.cornell.edu/uscode/html/uscode12/usc_sec_12_00002903----000-.html#c), insured any bank holding institution wishing to be re-designated as a financial holding institution by the Board of Governors of the Federal Reserve System would also have to follow Community Reinvestment Act compliance guidelines (http://en.wikipedia.org/wiki/Community_Reinvestment_Act#Legislative_changes_199 2) before any merger or expansion could take effect.
once the government attempts to supercede
actual economic processes, there are very predictable results
which the initiators of force claim are "unintended consequences (http://en.wikipedia.org/wiki/Unintended_consequences#History)".
Bad money drives out good, if,
their exchange rate is set by law.
it is as foolish as regulating
against some aspect of physics.
11-22-2010, 09:28 AM
economists understand that a specific regulation http://i54.tinypic.com/1qk12b.gif
was the cause of the problem.
when critics are reduced to deliberate lies
because the facts and any logical consideration
will not support their policy...
11-28-2010, 09:29 PM
Have you read All The Devils Are Here ?
The short version: There were no heros. Everybody was the bad guys.
White House (all of them): Guilty
Congress (D and R): Guilty
Wall Street: Guilty
Acountants and Rating Agencies: Guilty
Fannie and Freddie: Guilty
Oversight committees: Guilty
Borrowers who lied & or got greedy: Guilty
The Fed: Guilty
Of course, we could all live in government allocated state built housing units. Yeah, THAT would be better...
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