What Caused Current Banking Crisis?

[RJF]

On November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal was to allow commercial and investment banks to consolidate. Some economists have criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.[7][8]

[ESmorz]

http://www.hyscience.com/demposter.jpg

http://i150.photobucket.com/albums/s103/yourspacecooment/getmy/hate/hate_democrats.gif

http://marklevinfan.com/Images/IfDemsHadBrains.jpg

http://images.art.com/images/-/Mike-Ditka--C10108327.jpeg

http://i5.photobucket.com/albums/y164/wteach/surrender/SMtroopscut.jpg

http://animalmakers.com/News/2007_0222/images/military1.jpg

http://www.humoroust-shirts.com/images/monica-lewinsky.jpg

http://watch.windsofchange.net/pics/r1352513220_s.jpg

and that's all I have to say about that.

[g6civcx]

Question: the GLBA was initiated by Republicans and passed to a Democratic president for signature.

Pretend you're the President.

If you vetoed, you get blamed.
If you signed, and the law flops, you get blamed.
If you signed, and the law is successful, will you get credit?

What would you do?

[luftrofl]

On November 12, 1999, President Bill Clinton signed into law the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act of 1933. One of the effects of the repeal was to allow commercial and investment banks to consolidate. Some economists have criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.[7][8]

I hate the democrats but this constant democrat bashing is laughable. This is by no means excusing the democrats from any stupid moves, but you really need to learn to hate politicians for the right reasons.

U.S. Senate: Legislation & Records Home > Votes > Roll Call Vote (http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=106&session=1&vote=00105)

http://clerk.house.gov/evs/1999/roll570.xml

[Matej]

I heard the democrats were behind 9/11.

[Mi Beardo es Loco]

In the realty world there is something called a 7 year swing. It happened in 1983, 1990, 1996, and 2002. The price of houses go up and the interest rate goes down. Problem is when the market levels off the price of houses are far more than what they were before they started to go up. Unfortunately, banks were playing with FAR more money than they anticipated and now they're losing their asses off. It's pretty simple. Every 7 years the prices of houses rise, then they lower and flat line for 7 years. We're on the 1st year of the down slope, but they'll level off at around 200k for a average Ca house here in the 909 for example, minus the upper desert.

[Mi Beardo es Loco]

http://marklevinfan.com/Images/IfDemsHadBrains.jpg





and that's all I have to say about that.
And if Republicans had any common sense they'd be Libertarians or Constitutionalists. hahaha.

[ESmorz]

I wish someone would slap that bitch right in the mouth.

[Mi Beardo es Loco]

I wish someone would slap that bitch right in the mouth.
....................who?

[ESmorz]

Ann Coulter

http://iranpoliticsclub.net/politics/ann-coulter/images/Ann%20Coulter%20New%20Book%20Bitsh%21.jpg

[Mi Beardo es Loco]

Ann Coulter

http://iranpoliticsclub.net/politics/ann-coulter/images/Ann%20Coulter%20New%20Book%20Bitsh%21.jpg
yeah someone should gag her with their cocks.

[ryguy]

Seriously guys?

The people who signed into an ARM caused the banking crisis, as well as the greedy bastards who pushed ARMs onto the vulnerable homeowners. Lets not bring political parties into this, because it has absolutely nothing to do with it. Sorry if anybody on here bought into that ARM bullshit, but honestly, did you even read what you were getting into?

[SexPanda]

I heard the democrats were behind 9/11.

They were working with bigfoot, the aliens, and Elvis... Its common knowledge.

[Antihero983]

I'm sorry, i cannot take a political post by someone who has that idiot Palin quoted in his sig seriously.

And honestly, the one sided "look at the what the democrats did" posts are getting old.

all politicians have fucked up in one way or another, regardless of party.

examples?

George Bush actually allowed his wife to give birth to George W.

Clinton got blown by the UGLIEST secretary I've seen. I mean sheesh If i were president I would've got it from a decent look broad at least!

[g6civcx]

Clinton got blown by the UGLIEST secretary I've seen. I mean sheesh If i were president I would've got it from a decent look broad at least!

Clinton never had sexual relations with that woman!

[Antihero983]

^right right, and the jonas brothers are actually talented, and hannah montana should be in the rock and roll hall of fame.

[stiizy]

RED you funny bro haha...

On-topic

why are we turning the OT section into Political talk..

It's all the same shit....

Democrat i am,

But this Year i aint fucking with them....

I might not even vote fuck it!!

[ESmorz]

Maybe we should blame people who don't read their mortgage agreement thoroughly and buy shit they can't afford.

But nah, party bashing is way more fun.

Considering I was only 9 at the time... but if memory serves correctly wasn't Congress and the House of Representatives at the time Republican majority? Wouldn't that mean that a Republican majority Congress voted this act through? Voting in the Senate went 90-8-1 and in the House 362-57-15 and was introduced by a Republican Senator. Both parties voted heavily for it before it ever even got to the Executive level.

Republicans suck just as much as the Democrats sucka fool.

Michael Jordan was the real Vice President from 94-98.

[Phlip]

http://zilvia.net/f/off-topic-chat/178852-subprime-how-went-down-no-way-56k.html

I also read somewhere that it was Clinton's fault that Magic Johnson got HIV, which was the begin of the decline of the NBA, it was Clinton's fault that baseball is fucked up with steroids and it is Clinton's fault that the levees broke in New Orleans in 2005 too.

[LeftNutOfGowd]

Hahaha oh man this thread to hilarious

But on a serious note so chick that I work with were were talking about the same thing yesterday and how we might have another depression

[usdm180sx]

Damn Phlip do you have a PhD in economics? That thread is awesome!

[BustedS13]

RJF + "new thread" = the democrats did it

[LeftNutOfGowd]

http://zilvia.net/f/off-topic-chat/178852-subprime-how-went-down-no-way-56k.html

I also read somewhere that it was Clinton's fault that Magic Johnson got HIV, which was the begin of the decline of the NBA, it was Clinton's fault that baseball is fucked up with steroids and it is Clinton's fault that the levees broke in New Orleans in 2005 too.

RJF + "new thread" = the democrats did it

You guys couldn't be more wrong it wasn't Clinton's fault or the democrats it was all......

:lfault:

[Phlip]

Do you guys not get it?
We shouldn't vote for Obama because he is not only Democrat, but is also LEFT HANDED!!! Do you know who the last southpaw democrat president was?
Guess which hand Fidel Castro writes his name with?
Did you know that 50 Cent is southpaw?
You know which hand Jack the Ripper did his ripping with?

Vote a left-hander into office and the country is on the way to CERTAIN ruin.

[Gnnr]

Wow. My economics professors would be rofl. You think that one thing caused the whole crisis.

[ALTRNTV]

Clinton never had sexual relations with that woman!Here's a shirt I used to have.

http://i84.photobucket.com/albums/k38/dandiggity08173/clinton.jpg

[ESmorz]

Wow. My economics professors would be rofl. You think that one thing caused the whole crisis.

So it was a congregation of democrats?

:hide:

[Antihero983]

Do you guys not get it?
We shouldn't vote for Obama because he is not only Democrat, but is also LEFT HANDED!!! Do you know who the last southpaw democrat president was?
Guess which hand Fidel Castro writes his name with?
Did you know that 50 Cent is southpaw?
You know which hand Jack the Ripper did his ripping with?

Vote a left-hander into office and the country is on the way to CERTAIN ruin.

HEY HEY HEY HOLD THE FUCKIN PHONE HERE.

I'm left handed. :sadwavey:

[mrmephistopheles]

Clinton's fault that the levees broke in New Orleans in 2005 too.

George Bush doesn't care about black people.

Do you guys not get it?
We shouldn't vote for Obama because he is not only Democrat, but is also LEFT HANDED!!

I thought we weren't voting for him because he's black. :dunno:

Here's a shirt I used to have.

http://i84.photobucket.com/albums/k38/dandiggity08173/clinton.jpg

That. Is. AWESOME.

[Phlip]

HEY HEY HEY HOLD THE FUCKIN PHONE HERE.

I'm left handed. :sadwavey:
I rest my case.





George Bush doesn't care about black people.



I thought we weren't voting for him because he's black. :dunno:


We knew George Bush didn't care about black people, it just so happened that he was put on the spot by an act of God to have to show it... Funny, I heard that he referred to God as a "terrorist for his actions on the people of New Orleans," but this is an unfounded rumor.

I mean, we were already not voting for Obama because he was black, but the fact remains that we have to claim and stick to another reason, otherwise he'll try to sue for the presidency, claiming discrimination, Affirmative Action or Equal Opportunity or some shit like they do all the time.

[mrmephistopheles]

We knew George Bush didn't care about black people, it just so happened that he was put on the spot by an act of God to have to show it... Funny, I heard that he referred to God as a "terrorist for his actions on the people of New Orleans," but this is an unfounded rumor.

I mean, we were already not voting for Obama because he was black, but the fact remains that we have to claim and stick to another reason, otherwise he'll try to sue for the presidency, claiming discrimination, Affirmative Action or Equal Opportunity or some shit like they do all the time.

I thought GW was a fan of God for smiting them.

Oh yeah, I see your point - they are always doing that sort of thing.






...I'm about to turn blue over here :rofl:

[JeremyR]

blind hatred of democrats, NICE.

[Mi Beardo es Loco]

I heard George W say that the Levees broke in NO was because the Mexicans got board of the old way of coming to the states and tried something new. He also said that god informed him of this. what a smart man. :love:

[98s14inaz]

http://www.hyscience.com/demposter.jpg

http://i150.photobucket.com/albums/s103/yourspacecooment/getmy/hate/hate_democrats.gif

http://marklevinfan.com/Images/IfDemsHadBrains.jpg

http://images.art.com/images/-/Mike-Ditka--C10108327.jpeg

http://i5.photobucket.com/albums/y164/wteach/surrender/SMtroopscut.jpg

http://animalmakers.com/News/2007_0222/images/military1.jpg

http://www.humoroust-shirts.com/images/monica-lewinsky.jpg

http://watch.windsofchange.net/pics/r1352513220_s.jpg

and that's all I have to say about that.

Holy crap I'm with you. If there was still rep I'd give you some. Well said.

[The ROMAN]

Today's mail brought a laugh.

http://i22.photobucket.com/albums/b334/9082345029386/0917082148.jpg

[Future240]

I believe its a combo of the housing market bottoming out and fuel prices. Also them, YOU know who THEY are:squint:.............btw I dont know so since YOU know could you tell them to stop it, things are kinda starting to suck

[murda-c]

You fucking idiots.

OJ did it.

[lucky7]

i skipped everything but the first post.

greed = why we have a housing disaster. everyone wanted to make a quick buck. so they all started giving loans to unqualified people. who then, would default. resulting in nobody paying back freddie and fannie. now that the big lenders have no monies left, our economy cant bounce back as quickly as in the past. now that credit scores are all jacked up, and you have to have a 725+ score to get any loan. only 1 in 1,000 people, maybe less, are considered 'qualified' for loans. the fed has already dropped rates to 2%. so thats not the issue. people just cant qualify. now that fannie and freddie are controlled by the fed's, were gonna see the market bottom out. it may take a year. but its gonna come back. less and less people are defaulting on their loans these days. so theres a start. but its gonna take time. once things begin to turn around. im confident bernanke has what it takes to 'fix' things. everyone tends to blame the president for our current situation because its so easy. theres more to it than that. it all started with banks and greedy ass lending companies..

[aziankingz]

2 words.. Hedge funds..

[S13shaka]

there are about 1000 years of history to explain if you want the answer to that question, shit is real like that.

[ryguy]

Today's mail brought a laugh.

http://i22.photobucket.com/albums/b334/9082345029386/0917082148.jpg

rofl lol I can't believe nobody commented on this yet.

For those of you who missed it:
http://i2.photobucket.com/albums/y17/ryguy32789/aig.jpg

[lucky7]

ahahahahaha, i didnt even notice that. hahahaha.

[JRas]

watch this video it's funny:
http://www.youtube.com/watch?v=4lnFTpoSalk

http://farm4.static.flickr.com/3162/2864507526_419eff408a_o.jpghttp://www.youtube.com/watch?v=4lnFTpoSalk (http://www.youtube.com/watch?v=4lnFTpoSalk)

[CKAMC]

I love how you can find clips of john mccain being mister "I love de-regulation"

and now look at him flip flop on it after seeing what one signature to de-regulate things can do.

I dont think anyone can fix this shit.

in the end we need to bring the troops back home and just focus on things here.

if we focus here we will be able to solve out energy, imigration, and border issues since we will have money by cutting down on all the fuel we use to send troops/planes/ships over seas.

We don't have the money or dictatorship to be able to run as world police.

[drift freaq]

2 words.. Hedge funds..

Give this man a star! That and naked short selling thats been going. Hell Goldman Sachs and Morgan Stanley are still in good shape but the damn Hedge fund owners and short sellers started downing the stocks today. People there are a number of factors at play here. The overall problem is many investment banks got greedy and started buying more loans than they could back up. When everything fell apart they were stuck holding loans that were due with not enough assets to back them up.
Bear Stearns, Lehman Bros. Watch for Washington Mutual next.

If you want to know what the problem is at AIG they insure these loans.
If they fail we will see a depression. The numbers are in the trillions at this point. Why? One word. Greed.
Oh and it is true a Democratic President and Democrats in General push hard for affordable housing loans and got them.

Do not try to blame that on the Republicans, like a certain biased, stuck in the law world person on here would do.
The Democrats initiated it and people like Nancy Pelosi are now trying to deny that and blame it on the Republicans.
Hell even Obama is saying that its George Bushs fault in his speechs. Anybody stupid enough to believe that crap is a fucking moron and knows nothing about Political history as well as knowledge of the financial world

Hell I am even a registered Democrat and I see these facts. Most of the Democrats today are disgrace. I will not say a lot of Republicans are much better. Fact is both parties are fucked up and I will say it.

[lucky7]

werd. so who now controls AIG?? the Feds? they can only own something like 79.9% of the company of something? 85,000,000,000 loan. holy EFF. you know they would have told them to go get fucked if it werent going to make such an impact on the country by fileing for bankrupcy.

im just shocked these companies allowed themselves to get this far out of hand. lehman was 158 years old. meryl lynch almost dissapeared... that shit is insane.

[Antihero983]

Fact is both parties are fucked up and I will say it.

Um congrats? I've already said it multiple times...... :ddog:

[Phlip]

Wait a damned minute...
Gramm-Leach-Bliley Act - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act)
Introduced by REPUBLICAN Senator Phill Gramm and REPUBLICAN house rep James Leach, passed through the house and senate in such a manner that it was veto proof, yet the president who basically had no choice but to sign it into law is to blame?
Furthermore, could someone, ANYONE, explain to me just how the Gramm Leach Bliley act is to blam for this shit we're in now?

[Antihero983]

I blame RJF.

[smellslikecurry]

lets just all blame palin


that bitch is crazy

[The ROMAN]

I hear on the news how using leverage was a factor. When was it exactly that we forgot about the things that helped cause the Great Depression? And lack of regulation is exactly what let the country slide into that mess. Are we just going to repeat our mistakes again? Maybe start World War III later to get ourselves out? I was watching Larry King last night, and what they were saying is needed was that same thing that FDR did, crossing party lines and forgetting about Democrat vs Republican in order to restore confidence and urging people not to panic and retract money from banks, etc, even though their 401ks are disappearing.

I would recommend reading Kenneth Galbraith's The Great Crash, 1929. A lot of the weaknesses he believes caused the crash seem to still be present today, despite claims that a depression could never happen again.

[aziankingz]

they need to regulate the damn hedge fund companies.. they start rumors which leads to bulk selling of one company, then all other investors, fund managers follow, and that company gets screwed... then on to the next potential company with exposure to credit risks.. right now im worried about my company/job too.. but hopefully things work out.. if not.. ill be in line with the other 20k jobless finance/accounting people.

[Mi Beardo es Loco]

I blame Lazer Cats (http://www.youtube.com/watch?v=GRBNkMnG4uY)!!!!!!

[S14DB]

In December, Fortune magazine admitted it had been remiss naming insurance giant AIG one of its "10 Stocks To Buy Now" before a yearlong 18 percent decline. "We... didn't expect [the] mortgage unit to be such an albatross," editors wrote. To correct the error, the magazine had a fresh list of "The Best Stocks For 2008" — including Merrill Lynch. "Smart investors should buy this stock before everyone else comes to their senses," Fortune wrote, calling a recent correction in Merrill stock "an overreaction." Investors who followed this advice are now down 61 percent. All the big financial magazines butter their bread with dubious prescriptions for how hobbyist investors can beat market professionals, so Fortune is hardly alone in being humiliated by the ongoing market meltdown. We'll spread the embarrassment around after the jump.

The Panic Of '08: How Magazines Led Investors Toward Ruin (http://gawker.com/5050946/how-magazines-led-investors-toward-ruin)

[Phlip]

Viva Zapatero! - First Read - msnbc.com (http://firstread.msnbc.msn.com/archive/2008/09/18/1416114.aspx)
"The reign in spain escapes McCain's brain"

[RJF]

I blame RJF.

Thank you. :fawkd:

Here's an article from 2000 about how the mortgage/banking industry was forced into making questionable loans.

The Trillion-Dollar Bank Shakedown That Bodes Ill for Cities by Howard Husock, City Journal Winter 2000 (http://www.city-journal.org/html/10_1_the_trillion_dollar.html)

[Gnnr]

R.I.P. Free Market Economy and Laissez-faire. The Govt. should not have bailed out AIG.

Socialism, 21st Century Style - Floyd Norris - Business - New York Times Blog (http://norris.blogs.nytimes.com/2008/09/16/socialism-21st-century-style/)

[Mi Beardo es Loco]

And who else are we going to get the answers from besides the great Ron Paul?
Ron Paul: Time for Fed to Get Out of Housing | eFinanceDirectory.com (http://efinancedirectory.com/articles/Ron_Paul:_Time_for_Fed_to_Get_Out_of_Housing.html)

[SimpleS14]

Seriously guys?

The people who signed into an ARM caused the banking crisis, as well as the greedy bastards who pushed ARMs onto the vulnerable homeowners. Lets not bring political parties into this, because it has absolutely nothing to do with it. Sorry if anybody on here bought into that ARM bullshit, but honestly, did you even read what you were getting into?

I agree, with where I work I can say a lot is tied to this. Shotty lending practices, mortgage frauds, people trying to "flip" houses, companies venturing into a line of business they should have never done (mortgage backed securities) and betting big off debt.

Now I willingly to bet politicians (i.e. Congress...heck the whole fed. gov't.) will have a strong impact on the years to come with tighter regulations.