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Originally Posted by BobR
That's quite a quote. Can you give a reference to any founding document that states that our interests should be placed under submission to the people's government?
Honestly, it sounds like something you would expect to find The Redbook - Wikipedia, the free encyclopedia. |
If something is necessary for the overall well-being of society it should not be at the whim of private powers to do with it whatever they see fit, it's good stewardship must be assured by the people's government.
Deregulation in the form of the Gramm/Leach/Bliley act allowed Banks to speculate with other people's money and use our financial system for their own personal selfish gain.
The only solution is reregulation and bringing the system back under the control of the people's government in order to insure good stewardship of our money.
Quote:
Originally Posted by BobR
One could easily make the claim that a good chunk of our current mess resulted from too much, rather than too little regulation..
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Yes but then one would actually have to come up with open and checkable facts to show how and why they arrived at that conclusion. Such a person would be unable to do so which would mean the person is just spinning fantasies.
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Originally Posted by BobR
The government created a moral hazard by promising to back up questionable mortgages..
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That is not regulation. That is a sign of government agency that has been corrupted by the people it is supposed to be regulating.
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Originally Posted by BobR
and flat out pressured lenders to lower their lending standards..
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Where on earth are you coming up with this crap?
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Originally Posted by BobR
This created a situation where there was no downside to the risky loans that went under but big gains to be earned for the risky loans that managed to make the payments (at higher rates than a preferred customer would pay). No wonder the lenders did things that in hindsight look risky and foolish. Now the taxpayer is going to have to clean up the mess.
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I agree with this statement but disagree with your assertion as to the cause.
Deregulation through the Gramm/Leach/Bliley act once again allowed Investment Banks, your Neighborhood Banks (depository institutions) and Insurance companies to interact AGAIN.
Regulations seperating these institutions were brought about by the Great Depression since securities fraud and speculation were found to be one of the main causes.
Deregulation means that your insurance companies and neighborhood banks are now exposed to the same risky speculative endeavors that only investment banks were allowed to make for umpteen thousand years.
A simple quick-read of history proves that lack of regulation and seperation of our depository institutions from the Wall Street casinos will result in financial catastrophe. Republicans spearheaded this deregulation.
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Originally Posted by Senator Phil Gramm
"In the 1930s, at the trough of the Depression, when Glass-Steagall became law, it was believed that government was the answer. It was believed that stability and growth came from government overriding the functioning of free markets.
"We are here today to repeal Glass-Steagall because we have learned that government is not the answer. We have learned that freedom and competition are the answers. We have learned that we promote economic growth and we promote stability by having competition and freedom. "I am proud to be here because this is an important bill; it is a deregulatory bill. I believe that that is the wave of the future, and I am awfully proud to have been a part of making it a reality."
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Thanks Phil, we owe ya one.
