The 10 States With the Most Low Wage Jobs (They're all Red States LOL.)

[JayHawk]

No one has argued for no regulation. We already have massive regulation of corporations and all aspects of business. At some point you need to think about what economy you want. Should we allow any vestige of economic freedom to remain?

You stated earlier that our economy is being strangled by regulation YET what caused the giant clusterfuck in 2008 was DE-regulation or the loosening of the ability to get a loan. To the point that people didnt even have to have a single piece of paper in proof that they could repay the acquired debt. It was deregulated by BOTH parties yet only one party is fighting any vestige of control or consequence for the banking institutions that caused the problem. Republicans currently bemoan that Obama has not held anyone accountable or prosecuted white collar crime BUT they leave out that the Republicans removed most of the teeth in those regulations during the Bush years. I have even heard them criticize Obama for spending in a recession which is the only fucking solution in a free economy when the market tanks. In fact they even say that the austerity measures are worthwhile and Obama is a spendthrift YET our economy is growing and Europe who took the republican model IS NOT.

Theory is wonderful until you have factual based information to prove one way or the other. We now have that on a global scale and had it on a more micro scale after Japan collapsed and cut severely to bleed their way out. It doesn't work. It just feels good to say they spend to much. It is easier to not understand and just be angry.

 

[Benvolio]

The Community Reinvestment Act required banks to make doubtful loans to poor and minority borrowers as a condition to making good loans. This was not a loosening of regulation, it was regulation. Many such people took out variable rate mortgages. Banks were frequently audted for compliance. Then in2007 the Federal Reserve raised interest rates to head off possible inflation. This raised rates on the variable mortgages. Defaults occurred. The FDIC required loan portfolios to be marked to market, reducing bank capital. Banks became defense to protect capital. Loans called. Few new loans.
Regulation, more than the lack thereof was central to the meltdown.

 

[JayHawk]

Lies... I can not say it as well as others BUT the second line in this article is no shit the truth. The Sub-prime crisis was caused by greed and by a derivative strategy made possible by the Bush admin removing financial regulations allowing banks to gamble more and retain less of their capitol. Then further exacerbated by a Clinton and Bush admins setting an atmosphere of easy regulation and then hiring in cronies of the people making the decisions to oversee or enforce the regulations that remained. Which of course they did not and miraculously left the regulatory jobs and went right back into very well paid cushy jobs. There was little to no enforcement or verification when a well regarded major bank stated a derivative was AAA. It was simply accepted. That confidence stamp is how we sold them to other nations, banks and cities funds. That confidence is something we will never regain from some worldwide investors.

Go do your homework and then come out to play.

The Community Reinvestment Act, passed in 1977, requires banks to lend in the low-income neighborhoods where they take deposits. Just the idea that a lending crisis created from 2004 to 2007 was caused by a 1977 law is silly. But it’s even more ridiculous when you consider that most subprime loans were made by firms that aren’t subject to the CRA. University of Michigan law professor Michael Barr testified back in February before the House Committee on Financial Services that 50% of subprime loans were made by mortgage service companies not subject comprehensive federal supervision and another 30% were made by affiliates of banks or thrifts which are not subject to routine supervision or examinations. As former Fed Governor Ned Gramlich said in an August, 2007, speech shortly before he passed away: “In the subprime market where we badly need supervision, a majority of loans are made with very little supervision. It is like a city with a murder law, but no cops on the beat.”

 

[JayHawk]

OBTW The assholes weren't prosecuted for this crime against humanity because the laws made what they did perfectly legal due to....

LACK OF REGULATORY LAW TO PROSECUTE .

Because Bush removed that as well.

Go fucking figure.

 

[Kulindahr]

To be fair, the mess started under Carter, and every administration since pushed the effort along.

 

[Benvolio]

Here's a Forbes article on the pernicious effect of the Community Reinvestment Act The Government Did It - Forbes.com
As expected the Democrats argue that is is all someone else's fault. But the whole purpose of the act is to force banks to make loans they would prefer not to make as a matter of business.

 

[Kulindahr]

Most Democrats I know are perfectly willing to concede that the mess started with Carter and just snowballed, including enthusiasm from Clinton, who while being effective in many areas also had a habit of pushing inane ideas.