Financial Sector Deregulation Gone Wild
Received from a Naybob of Realty... a diatribe titled: OUR WORLD LEADERS...ARE THESE NOT "HEADY" TIMES?
Said diatribe praises the powers that be in the recent meeting of the minds on the systemic global financial crash...
Am I the only one who feels that the most important news of the day, nee week, and even month is that the G8 or eight top nations of the world come together at a moment’s notice to meet with our President for the purpose of working as a team to resolve the catastrophic economic conditions affecting all countries.
The media may not care about these events but they will be written into the history books as evolutionary in the advancement of mankind.
Our Nattering Retort... Two days ago, Lahde said it all about our "best and brightest"....
"These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other sides of my trades. God Bless America."
I agree these events will be evolutionary in the advancement of mankind.
In the future, these events will be looked upon as a text book example of what not to do and how elitist management by crisis stole the last vestiges of American democracy. We will be paying for their "heady" mistakes for decades... as for these so called leaders a pathethic bunch of silver spoon in mouth crooks who make the Keystone Cops and 3 Stooges look like Einstein's.
Our Naybob of Realty exposing her true Republican Fox Network tilt... Natters back... You’re wrong, I know who the crooks are. The bill that allowed banks to sell securities was signed by Clinton. The greenback/grant deed dope pushers of the past decade were the top Democrats heading the committees that coupled with their criminal activities with the criminal volume sale of securities, i.e., Dodd, Frank, Raines. Keep it real, Nattering One.
Dear Naybob of Realty, Thanks for the inspiration... and a word to the wise... It's rarely a good idea to pick fights with one's friends, especially the clever ones.
So here goes (in my best Dan Akroyd, doing the Point-Counterpoint skit from Saturday Night Live circa 1978)...
Jane, you ignorant slut... You need to keep it real and get your MYOPIC Republican Fox Network rose colored eye glass lenses cleaned and reground... the GLPA bill was a Republican bill passed by a Republican majority congress and signed by Clinton.. the Congress would have overridden his veto.
Furthermore, your precious little Uncle Ronnie is the one who really screwed all of us with Garn St. Germain. Your typical party line misinformed diatribe proves you are nothing more than a Republican cheerleader who still can't get their FOX brainwashed "facts" straight.
This missive contains all the FACTS which will "keep it real" by correcting your elephantine misinformation and setting the record straight. So, lets jump in the wayback machine and do some fact checking...
The Carter administration oversaw the relaxing of regulations on what interest rates S&L's could pay and increased the amount that the gov't insured of their deposits.
The damaging deregulation came during the Reagan administration. December, 1982 the Garn St Germain Depository Institutions Act of 1982 is enacted.
This Reagan Administration initiative gives expanded powers to federally chartered S&Ls which had previously been limited primarily to the home-loan market and enables them to diversify their activities with the view of increasing profits.
Major provisions include: elimination of deposit interest rate ceilings; elimination of the previous statutory limit on loan to value ratio; and expansion of the asset powers of federal S&Ls by permitting up to 40% of assets in commercial mortgages, up to 30% of assets in consumer loans, up to 10% of assets in commercial loans, and up to 10% of assets in commercial leases.
As usual, after the Republicans cleared all obstacles... the result was an orgy of speculation, profiteering and outright plundering of assets culminating in collapse and at the time, the biggest financial bailout in US history, costing the federal government more than $600 billion.
This would be known as the S&L crisis which led to a recession in the early 90's and resulted in a little known Arkansa governor defeating Shrub Sr. in 1992. The Garn St. Germain deregulation practically eliminated the distinction between commercial and savings banks. Deregulation caused a rapid growth of savings banks and S&L's that now made all types of non homeowner related loans. Now that S&L's could tap into the huge profit centers of commercial real estate investments and credit card issuing many entrepreneurs looked to the loosely regulated S&L's as a profit making center.
As the eighties wore on the economy appeared to grow.
Interest rates continued to go up as well as real estate speculation. The real estate market was in what is known as a "boom" mode. Many S&L's took advantage of the lack of supervision and regulations to make highly speculative investments, in many cases loaning more money then they really should. When the real estate market crashed, and it did so in dramatic fashion, the S&L's were crushed. They now owned properties that they had paid enormous amounts of money for but weren't worth a fraction of what they paid. Many went bankrupt, losing their depositors money. Does any of this sound vaguely familiar?
The 1980's S&L crisis should, unfortunately, the public did not learn its lesson from Uncle Ronnies folly, as a major redux would occur under Shrub Sr. & Jr. culminating in the largest global systemic collapse in history.
Tomorrow in Part II we will jump into the wayback machine once again, and do a some very revealing fact checking...
Said diatribe praises the powers that be in the recent meeting of the minds on the systemic global financial crash...
Am I the only one who feels that the most important news of the day, nee week, and even month is that the G8 or eight top nations of the world come together at a moment’s notice to meet with our President for the purpose of working as a team to resolve the catastrophic economic conditions affecting all countries.
The media may not care about these events but they will be written into the history books as evolutionary in the advancement of mankind.
Our Nattering Retort... Two days ago, Lahde said it all about our "best and brightest"....
"These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other sides of my trades. God Bless America."
I agree these events will be evolutionary in the advancement of mankind.
In the future, these events will be looked upon as a text book example of what not to do and how elitist management by crisis stole the last vestiges of American democracy. We will be paying for their "heady" mistakes for decades... as for these so called leaders a pathethic bunch of silver spoon in mouth crooks who make the Keystone Cops and 3 Stooges look like Einstein's.
Our Naybob of Realty exposing her true Republican Fox Network tilt... Natters back... You’re wrong, I know who the crooks are. The bill that allowed banks to sell securities was signed by Clinton. The greenback/grant deed dope pushers of the past decade were the top Democrats heading the committees that coupled with their criminal activities with the criminal volume sale of securities, i.e., Dodd, Frank, Raines. Keep it real, Nattering One.
Dear Naybob of Realty, Thanks for the inspiration... and a word to the wise... It's rarely a good idea to pick fights with one's friends, especially the clever ones.
So here goes (in my best Dan Akroyd, doing the Point-Counterpoint skit from Saturday Night Live circa 1978)...
Jane, you ignorant slut... You need to keep it real and get your MYOPIC Republican Fox Network rose colored eye glass lenses cleaned and reground... the GLPA bill was a Republican bill passed by a Republican majority congress and signed by Clinton.. the Congress would have overridden his veto.
Furthermore, your precious little Uncle Ronnie is the one who really screwed all of us with Garn St. Germain. Your typical party line misinformed diatribe proves you are nothing more than a Republican cheerleader who still can't get their FOX brainwashed "facts" straight.
This missive contains all the FACTS which will "keep it real" by correcting your elephantine misinformation and setting the record straight. So, lets jump in the wayback machine and do some fact checking...
The Carter administration oversaw the relaxing of regulations on what interest rates S&L's could pay and increased the amount that the gov't insured of their deposits.
The damaging deregulation came during the Reagan administration. December, 1982 the Garn St Germain Depository Institutions Act of 1982 is enacted.
This Reagan Administration initiative gives expanded powers to federally chartered S&Ls which had previously been limited primarily to the home-loan market and enables them to diversify their activities with the view of increasing profits.
Major provisions include: elimination of deposit interest rate ceilings; elimination of the previous statutory limit on loan to value ratio; and expansion of the asset powers of federal S&Ls by permitting up to 40% of assets in commercial mortgages, up to 30% of assets in consumer loans, up to 10% of assets in commercial loans, and up to 10% of assets in commercial leases.
As usual, after the Republicans cleared all obstacles... the result was an orgy of speculation, profiteering and outright plundering of assets culminating in collapse and at the time, the biggest financial bailout in US history, costing the federal government more than $600 billion.
This would be known as the S&L crisis which led to a recession in the early 90's and resulted in a little known Arkansa governor defeating Shrub Sr. in 1992. The Garn St. Germain deregulation practically eliminated the distinction between commercial and savings banks. Deregulation caused a rapid growth of savings banks and S&L's that now made all types of non homeowner related loans. Now that S&L's could tap into the huge profit centers of commercial real estate investments and credit card issuing many entrepreneurs looked to the loosely regulated S&L's as a profit making center.
As the eighties wore on the economy appeared to grow.
Interest rates continued to go up as well as real estate speculation. The real estate market was in what is known as a "boom" mode. Many S&L's took advantage of the lack of supervision and regulations to make highly speculative investments, in many cases loaning more money then they really should. When the real estate market crashed, and it did so in dramatic fashion, the S&L's were crushed. They now owned properties that they had paid enormous amounts of money for but weren't worth a fraction of what they paid. Many went bankrupt, losing their depositors money. Does any of this sound vaguely familiar?
The 1980's S&L crisis should, unfortunately, the public did not learn its lesson from Uncle Ronnies folly, as a major redux would occur under Shrub Sr. & Jr. culminating in the largest global systemic collapse in history.
Tomorrow in Part II we will jump into the wayback machine once again, and do a some very revealing fact checking...
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