Thursday, April 02, 2009

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.


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