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Dodd-Frank: Pimps for Fannie and Freddie

Anonymous11565 Wrote: Sep 16, 2012 7:10 PM
During the great depression, banks were forbidden from making investments in the stock market. Democrats let them back in in the mid 90's. Crashed again, who would a thought!
Jimsd55 Wrote: Sep 16, 2012 7:14 PM
LOL ... yea, the democrats!

The banking industry had been seeking the repeal of the 1933 Glass–Steagall Act since the 1980s, if not earlier. In 1987 the Congressional Research Service prepared a report that explored the cases for and against preserving the Glass–Steagall act.
Respective versions of the legislation were introduced in the U.S. Senate by Phil Gramm (Republican of Texas) and in the U.S. House of Representatives by Jim Leach (R-Iowa). The third lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr. (R-Virginia), Chairman of the House Commerce Committee from 1995 to 2001.
Account closed Wrote: Sep 16, 2012 9:30 PM
http://cei.org/op-eds-articles/beware-glass-steagall

The financial collapse was caused by the issuance of 27 million risky or sub-prime loans. Clinton and Janet Reno threatened banks with harsh retribution if they didn't make these loans. That was the problem, not the repeal of Glass-Steagall.

This past Monday, I took part in a panel discussion about the financial crisis at the European Resource Bank in Brussels.

One of my main points was that people in private markets always make mistakes, but that this is a healthy and necessary process so long as there is a profit and loss feedback mechanism that encourages people to quickly learn when things go wrong (and also to reward them when they make wise decisions).

In the financial crisis, though, we saw the government interfere with this process. First, bad policies such as easy money from the Fed and

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