“This should be the biggest political story of the Century but no one in the media is questioning it.”
I could not agree with you more on this point. And no, Wall Street didn’t just become greedy overnite and that is precisely why it was so stupid to deregulate thru the overturn of Glass Steagall protection. What in the world was going to keep Wall Street from going right back where it had been once before? Nothing.
And, if the grass roots type people keep living in la-la land, and fall for every stupid shill excuse out there, for example that the CRA caused this, we will be back there again.
This is not a liberal or conservative thing, or a GOP or Democrat thing, although I personally blame the conservatives and GOP more. There is plenty of blame to go around but it is not for the CRA which if anything, had a minimal impact.
I would not expect you to trust me. Read up on it. Read “Market Ticker” or “Naked Capitalism” daily. These people are hardly muley, pukey, liberals. They get down to the point, and trust me, they ain’t blaming the CRA.
Here’s a real good story from a Wall Streeter who wrote “Liars Poker.” He follows the tale of Steve Eismann who figured out the Wall Street con game and managed to make money off the nonsense.
I didn’t see any blame getting thrown onto the CRA. Wall Street wasn’t getting forced to do this stuff. Heck, you couldn’t stop ‘em. If you have been following the AIG-Geithner-Goldman Sachs thing, you might be getting a little taste of the problem.
parsy, who will send you another little tidbit shortly.
“Wall Street didn’t just become greedy overnite and that is precisely why it was so stupid to deregulate thru the overturn of Glass Steagall protection.”
Blaming repeal of Glass Steagall is like blaming the firemen for ruining your stuff because they got it wet while putting out the fire you started by falling asleep with a cigarette in your mouth.
The tricks that Wall Street and yes the republicans & democrats came up with to try and deal with all this bad debt may not have helped anything in the long run but it bought time to try and get to the root of the problem, Fannie and Freddie.
If there was No bad debt from turning the mortgage industry into a welfare program, there would have been no need to come up with ways to hide/hedge against/insure it or whatever else they did to try and mitigate the effect. The collapse was going to happen and kill the economy one way or another.
Unfortunately, all the time in the world couldn’t drag the democrats away from their favorite vote-buying program and not to mention their favorite slush funds. Not only did Fannie and Freddie enrich the ex-Clintonites running them into the ground but we were/are allowing them to bribe the very congressmen that were/are supposed to be overseeing them. This regulation was supposed to stop excess not breed it but liberalism always brings about the opposite of it’s stated intent. Obama took in more per year from Fannie/Freddie than anyone else in Congress but do you remember hearing that from anyone during the election ?
Regulation was the problem not deregulation. We trusted our mortgage system to politicians and got what we deserved for trusting politicians. What happened in Wall Street afterwards was a problem but not the root of the problem without it this all would have still blown up in our faces.