Med, you are truly retarded. You cant make up absurd fact to suit your agenda. The housing crisis is due to hacks like Rep. Barney Frank (D-MA) and Sen. Chris Dodd (D-CT) who legislated corps like Fanny Mae and Freddy Mac to give loans to low income people who couldnt qualify before. This caused a huge surge in the demand for housing, driving the prices way up. Then, of course, all these low income homeowners defaulted, lost their homes and, flooded the market with repossessed houses. Prices plunged when the market was flooded with houses. Frank and Dodd had the balls to block an attempt to regulate Fanny and Freddie more when the shit started to go bad. By the way can you guess who are the biggest campaign supporters of these two hacks? The homo Frank was Banging some dude high up in Fanny for about 10 years as well.
So Med.... take your imaginary propaganda elsewhere.
and I guess Phil Gramm didn't have anything to do with the collpase?It was people of your ilk that started this downturn by promoting unrealistic home values back in the 70-80s, escalating them to the pre crash values that needed an adjustment, causing all this turmoil, just so you could get rich.
Med, you are truly retarded. You cant make up absurd fact to suit your agenda. The housing crisis is due to hacks like Rep. Barney Frank (D-MA) and Sen. Chris Dodd (D-CT) who legislated corps like Fanny Mae and Freddy Mac to give loans to low income people who couldnt qualify before. This caused a huge surge in the demand for housing, driving the prices way up. Then, of course, all these low income homeowners defaulted, lost their homes and, flooded the market with repossessed houses. Prices plunged when the market was flooded with houses. Frank and Dodd had the balls to block an attempt to regulate Fanny and Freddie more when the shit started to go bad. By the way can you guess who are the biggest campaign supporters of these two hacks? The homo Frank was Banging some dude high up in Fanny for about 10 years as well.
So Med.... take your imaginary propaganda elsewhere.
The prime cause was the subprime mortgages, thus the subprime mortgage crisis...and I guess Phil Gramm didn't have anything to do with the collpase?
In 1933, a few years following the stock market crash, Congress passes the Glass-Steagall Act, in hopes that regulating banks will help prevent market instability, particularly amongst Wall Street banks. The purpose of the act is to separate commercial banks that focus on consumers from investment banks, which deal with speculative trading and mergers.
The Glass-Steagall Act provided the proper oversight and entity separation that would prohibit banks and other financial companies from merging into giant trusts (conflict of interests) -- giant trusts or corporations being more powerful, naturally, and having the seemingly limitless capital to lobby their corporate interests, however, with a very myopic scope (particularly when it comes to factoring in potential losses -- most banks, as seen in contemporary times, chose not to anticipate losses in the mortgage market; they presumed home prices would continue to appreciate).
In 1999, former Senator Phil Gramm (who is, incidentally, Senator John McCain's economic adviser and cochairs his presidential campaign) set out to completely gut the Glass-Steagall Act, and did so successfully, replacing most of its components with the new Gramm-Leach-Bliley Act: allowing commercial banks, investment banks, and insurers to merge (which would have violated antitrust laws under Glass-Steagall). Sen. Gramm was the driving force behind the Gramm-Leach-Bliley Act, as he had received over $4.6 million from the FIRE sector (Finance, Insurance and Real Estate donations) over the previous decade, and once the Act passed, an influx of "megamergers" took place among banks and insurance and securities companies, as if they had been eagerly awaiting the passage of Gramm's Act. Everything in between Glass-Steagall and Gramm-Leach-Bliley (i.e. Savings and Loan crisis/bust) was, in large part, the incubation period for what would take place over the nine years that would follow the passage of Gramm's Act: an experiment in deregulation.