If Canada did it why cant we?

**PeterUK75** · 07-25-2011

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.

**FearandLoathing** · 07-25-2011

Originally Posted by MeadHallPirate

ahoy Fishjoel,

come on matey...be reasonable.

the CRA exists now as it did durin' the mortgage meltdown....so what is the difference now, in 2011?

the difference is that banks are doin' thar due diligence when makin' a loan, somethin' that they ought to have been doin' all along.

banks did away with such quaint notions 'o feduciary responsibility back durin' the Bush administration not because they were forced by the government to make these ruinous loans (frankly that notion, when yer talkin' about Bear Stearns or Lehmen Bros, be laughable)...they did so in pursuit 'o massive, short term profits. it was willful intent, matey...you have to know that by now.

yer never goin' to convince this pirate that them poor, powerless banks were somehow bein' ruthlessly manipulated by a bunch 'o liberal senators and house members. that would be the tail waggin' the dog, fer certain.

the way yer puttin' it, the banks were basically the real victims in all 'o this.

thats a hard point 'o view fer me to support.

- MeadHallPirate

As usual a fine post my pirate friend. But the issue actually started in the Clinton years...it just got rolling real good in the Bush years. As you say, there's a whole treasure chest of blame to go around

**MeadHallPirate** · 07-25-2011

Originally Posted by FearandLoathing

As usual a fine post my pirate friend. But the issue actually started in the Clinton years...it just got rolling real good in the Bush years. As you say, there's a whole treasure chest of blame to go around

ahoy thar mighty FearandLoathing,

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.

aye.

- MeadHallPirate