The long and winding road: How we got from there to here...
Notes for a future post:
The sub-prime mortgage meltdown isn't the cause of our economic mess-it is more like a symptom.
1994- Community Reinvestment Act (CRA) passed-this law made it easier for underprivileged families to buy homes. A floodgate was opened, gradually banks loosened even more restrictive oversights, such as requiring a decent credit rating, stable employment, etc.
1999- Glass-Steagall Act eliminated.
2000- Commodity Futures Trading Corporation phased out. Derivative trades are now largely unregulated. Geithner and Summers leave their fingerprints behind at the crime scene.
2002-2003- Alan 'easy money' Greenspan lowers interest rates to artificial levels...sharks on Wall Street go on a borrow and gamble feeding frenzy...
2004, April: Security and Exchange Commission rule change- hi powered investors go for broke...
Basil II...accounting rule tangles everything up. Market falls.
Bailouts and the Fed prints 9 trillion....Hyperinflation, default, and dollar collapse leads to new global currency, the entire US becomes a backwater as China and India claim the 21st century.
The sub-prime mortgage meltdown isn't the cause of our economic mess-it is more like a symptom.
1994- Community Reinvestment Act (CRA) passed-this law made it easier for underprivileged families to buy homes. A floodgate was opened, gradually banks loosened even more restrictive oversights, such as requiring a decent credit rating, stable employment, etc.
1999- Glass-Steagall Act eliminated.
2000- Commodity Futures Trading Corporation phased out. Derivative trades are now largely unregulated. Geithner and Summers leave their fingerprints behind at the crime scene.
2002-2003- Alan 'easy money' Greenspan lowers interest rates to artificial levels...sharks on Wall Street go on a borrow and gamble feeding frenzy...
2004, April: Security and Exchange Commission rule change- hi powered investors go for broke...
Basil II...accounting rule tangles everything up. Market falls.
Bailouts and the Fed prints 9 trillion....Hyperinflation, default, and dollar collapse leads to new global currency, the entire US becomes a backwater as China and India claim the 21st century.
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