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I have seen quite a few documentaries on this and the consensus in the UK is that the deregulation of the banking sector by the Labour Government was largely to blame for the huge losses here. I don't know whether or not the same is true for the US.
For the size of our entire economy the banking sector was huge as we had some of the worlds largest banks and they could have pulled us under completely.
Banks need regulation or they will get out of control and thinking they can regulate themselves is a dangerous road to go down as the UK's recent history shows.
"Any fool can make a rule. And every fool will mind it." Henry David Thoreau
indeed, the issue blossomed under President Clinton, when the ill-fated Gramm-Leach-Bliley act deregulated the financial industry.
suddenly 'twas fine fer banks to trade these mortgage backed securities amongst themselves...so who cared whether them loans were good or not? afterall, no one who sold the loan ended up ownin' it and thar was shiploads 'o monies to be made!
THAT was the problem, NOT the CRA. both ye and meself know this, though it seems many be lost at sea on this detail.
less US federal government regulation resulted in the financial disaster that the entire planet be grapplin' with.
Last edited by MeadHallPirate; 07-25-2011 at 03:12 PM.