Quote
The big thing politicians did to cause the current economic mess was repeal post-Depression laws keeping banks from investing in things like hedge funds and "mortgage backed investment instruments." That was in the Clinton administration, although some senators from both parties pushed it through.

That's one reason so many banks were poised to go glands up. They invested in these high-risk areas that depended on the price of housing going up and up. That's the bubble, and eventually it burst.
Fannie and Freddie were part of it -- Congress allowed them to accept variable rate subprime loans as part of their mandate to offer loans to low income folks.


Does anyone know who introduced a bill about 2005 or 2006 to stop it and get Fannie and Freddie under control?
Does anyone know who filibustered the bill and prevented it from passing? Which allowed the Housing prices and the high risk lending to continue until the meltdown?

I wonder what would have happened if the car companies did not get bailed out. Would they have closed for good? I seriously doubt it. And even if they had the other car companies would have picked up the slack. It would have hurt a bit gut it would not have caused our collapse.
I think it possible the Bailout might actually be contributing to our current continued decline.
But we will never know so it's a moot point.

Bill
http://www.soundclick.com/billrobinson
http://www.dreamqueststudio.com
Skype; bill.robinson12

"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not." --Thomas Jefferson didn't say it

http://voidnow.org/
http://www.americansworking.com/