Rubin as was Gramm was a driving force in the repeal of Glass Steagall. It doesn't make EITHER of them "dumb" or corrupt. It's all 20-20 hindsight. The repeal vote passed the Senate 90-8 with both Biden and McCain voting in support. Euro banks are levered even higher than us-that's why Europe is imploding also. The commodities futures modernization act was an offshoot that basically allowed derivatives to be margined as if they were futures. Not a ridiculous idea. In a way they are futures. ZB has a 2% margin too. Obviously it was a mistake because unlike futures the margining could be circumvented. But for anyone to think this was Gramm's idea on his lonesome is disingenuous. The irony: Rubin wanted the legislation for banks (he became CEO of C months later) Gramm wanted it for Enron, lol. This link is for below:http://newsgroups.derkeiler.com/Archive/Soc/soc.culture.polish/2008-09/msg01969.html The 2001 Economic Report of the President, the last one written under Clinton, was unequivocal in dismissing Glass-Steagall and touting the virtues of financial deregulation: "'Given the massive financial instability of the 1930s, narrowing the range of banks' activities was arguably important for that day and age. But those rules are not needed today, and the easing of interstate banking rules, along with the passage of the Financial Services Modernization Act of 1999 have removed them, while maintaining appropriate safeguards. These steps allow consolidation in the financial sector that will result in efficiency gains and provide new services for consumers. --------------------------------------------------------------------------------- I'm sorry btw for being rude. In all honesty your brightness often hides your inexperience.
Ok Pabst, I read some of the link, and that link was not biased or blaming one side. I have to read again to understand. So from what I read, both sides dem or rep profited at different times in the derivatives game because it was made easy. Do you think anyone could see how it would end with such a mess? I think no one could do that kind of math into the future. So something needs to change to stop something this big from happening, yes? And the article said that Obama wants to change this corruption, but (a man does not change the politics, but the politics change the man), but I do not believe that. Good link, and thank you.