Quote from gnome:
There are several parties who deserve the BIG FINGER OF BLAME here.
1. First and foremost, the DemoCraps!! Their 1999 legislation demanding Affirmative Action Lending and that Fannie Mae guarantee the loans.
2. The Fed for providing stupidly excessive liquidity at stupidly low rates.
3. Regulators who didn't put a stop to CDS "BETS".
4. Regulators for allowing 40:1 leverage at investment banks.
5. SOME of Wall Street... for promoting a flawed, highly leveraged, [thought to be "risk free"] investment.
6. Credit rating agencies for grading "shit as sugar".
7. Greedy investors levering up to load on the perceived "risk free return".
NONE of these are the Wall Street trading community...
I'm sorry to break this to you Gnome
but #3, #4, and #5 all come from the "Commodity Futures Modernization Act of 2000" which was authored by a bunch of REPUBLICAN senators and house of reps.
In fact, the legislation was introduced in the House by Representative Ewing of Illinoiss, and co-sponsored by Bliley of Virginia, Combest of Texas, LaFalce of NY ( the only Dem ), and Leach of Iowa.
It was never even debated in the House.
A companion bill was introduced in the Senate by Dick Lugar of Indiana, and so-sponsored by Fitzgerald of Illinoiss, Gramm of Texas, and Hagel of Nebraska, along with Dems Harkin of Iowar and Johnson of South Dakota.
Anyone see a MIDWEST pattern here?