Excellent video to understand the causes of the current crisis

…I thought the current economic crisis was brought about by Clinton repealing the Glass-Steagall Act of 1933 and replaced it with the

Gramm-Leach-Bliley Act

So isn’t this a case of government removing “regulation” which allowed capitalism to run wild?

As far as I can see, the justification for the Gramm-Leach-Bliley Act was the mistaken belief that banks could and would regulate themselves.

Boy! were we wrong.

Capitalism is the most powerful economic force yet devised. Unregulated, it will eat its own children every time in an effort to beat the competition.

This whole idea that we don’t need to regulate capitalism is another example of the dominance of the corporate wing’s political agenda in my party, the Republican party. We must re-empower the grassroots of the party to correct this political imbalance if we want to regain the trust of the American electorate.

ex animo
davidfarrar

Rahm Emanuel had a lot more to do with the mortage implosion than most people realize. After making his reputation as an aggresssive Democratic fundraiser, from the corrupt Chicago Machine of Richard Daley to the nefarious Clinton White House, he was put on the board of Freddie Mac in the early 90′s… at the same time Freddie is making dubious donations on Capital Hill and had an alarming amount of accounting irregularities. And for such self-serving activities, he was indeed paid handsomely.

Then suddenly he’s an investment banker with zero experience who makes $16M his two-and-a-half-year stint. The whole thing stinks like trash-truck juice.

He seems to be the one behind dubious fundraising for Obama, which of course the press never really asked much about.

He then disappeared to Africa in the middle of the Blago eruption, who of course he was talking to about the Senate seat. When questioned by reporters, he just gets snotty and tells them to leave him alone.

Can’t wait to see what the Blago tapes have on the little weasel.

http://reaganiterepublicanresistance.blogspot.com

http://www.c-spanarchives.org/library/index.php?main_page=product_video_info&products_id=281010-1&clipStart=0&clipStop=3900&showVid=true

or use:

http://www.c-spanarchives.org/library/includes/templates/library/flash_popup.php?pID=281010-1&clipStart=&clipStop=

And here is the transcript:

http://qanda.org/Transcript/?ProgramID=1197

Lamb interviewed him past fall on C-Span and Wallison was outstanding. I think Lamb, despite his efforts at neutrality, was personally outraged by the Fannie/Freddie scandal.

Wallison should be nationally famous.

david farrah : There are a few problems with your comment.

Gramm has little to do with the current situation. Those organizations that took advantage of the changes allowed under Gramm are not the ones in financial trouble.

The regulations that caused this mess pre-existed Gramm and are still in force.

In fact, the FDIC is considering taking action against a small upstate New York bank because it has not been making sub-prime loans

While almost everybody now realizes that sub-prime loans are toxic, the FDIC regulators are still trying to enforce the regulations that compelled the banks to make sub-prime loans.