Speaking of deregulation...The only reg I can think of that was done away with that could have played a part in the economic collapse was Glass-Steagall, and that repeal was signed by William Jefferson Clinton.
“President Obama says he deserves four more years in the White House”..........
Well I say, “Obama deserves 40 years in Levanworth”.
That is one, which probably contributed to the AIG role, as well as weakening other commercial banks with investment banking risks.
Not an investor, but did they not eliminate a rule called the “uptick rule”, which, I think, would not allow a short-sale after a security had started on its way down, but would have to tick upward before the short could be done. That might be an important tool for Soros and his ilk to create a market crash and panic.
I also think they monkeyed with accounting rules. If you remember, some of the “mark-to-market” accounting rules were decried by former FDIC Chairman Bill Isaac as unnecessary and as exacerbating the liquidity crisis. Isaac was FDIC Chairman in the early 1980’s when banks were dealing with huge amounts of bond investment depreciation when interest rates spiked into the 20% range. I was a young buck bank examiner watching that happen.
More recently, regulators, at the worst possible time, demanded that banks implement accounting rules for the Allowance for Loan and Lease Losses that had been sitting out there since the early 1990’s or earlier. For many years, bank regulators did not require that they be adopted. Then, when all hell breaks loose, the regulators suspiciously and abruptly start holding the banks to those standards.
As if that is not all, our regulators got us tied up with Basel international banking standards in the early 1990’s. We have recently seen the third round proposed. After round 1, the banks were told that only those engaging in international banking would be affected. In Basel III, capital rules as proposed will be onerous for community banks and will likely spur much more consolidation in the banking industry. Fewer banks are easier for big brother to control and manipulate. I do NOT see all of this as an accident, but the execution of a plan that is not in the interest of citizens and promoting competition, but to control the economy and the masses. I see it as a great evil that has flown largely under the radar for many years.