ajhil Wrote:
Oct 10, 2012 5:14 AM
These previously illegal instruments made it possible for banks to profit from subprime mortgages that they would never before have considered making. Meanwhile Gramm used budget reductions to cripple the regulatory ability of the SEC, making it unable to protect consumers or the banking industry from the disastrous gambling that he had made possible. Eventually the accumulated liability of the CDS market, reaching nearly $100 trillion, paralyzed the banking industry. You can read a more complete account by David Corn in Mother Jones Magazine (summer, 2008) and in many other places; but whatever you do, don't believe this dishonest piece of tripe by J.G.