Glass-Stegall was repealed by a republicans controlled congress when clinton was president. clinton signed the law but has since admitted it was a mistake. it was a mistake. "But 10 years ago, the revocation of Glass-Steagall drew few critics. In the House, 155 Democrats and 207 Republicans voted for the measure, while 51 Democrats, 5 Republicans and 1 independent opposed it. Fifteen members did not vote. One of the leading voices of dissent was Senator Byron L. Dorgan, Democrat of North Dakota. He warned that reversing Glass-Steagall and implementing the Republican-backed Gramm-Leach-Bliley Act was a mistake whose repercussions would be felt in the future. âI think we will look back in 10 yearsâ time and say we should not have done this, but we did because we forgot the lessons of the past, and that that which is true in the 1930s is true in 2010,â Mr. Dorgan said 10 years ago. âWe have now decided in the name of modernization to forget the lessons of the past, of safety and of soundness.â"
In September of 1999, an article in the New York Times predicted with amazing accuracy the financial collapse that would begin seven years later. --------------------------------------------- NEW YORK TIMES Fannie Mae Eases Credit To Aid Mortgage Lending By STEVEN A. HOLMES Published: September 30, 1999 WASHINGTON, Sept. 29â In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits. In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans. ''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.'' Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market. In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's. ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''
he could never debunk that -- because that was the devastating culprit and clinton admitted his "mistake". But dems have always done favors for banks and trial lawyers. its who runs the party.
Hmm, well they sure are good actors. You could easily believe that this was real footage. What was it you always say about religion? Having irrational beliefs in something absurd no matter how strong the evidence is to the contrary? LOL!!! You didn't drop religion, you just converted...
Clinton also admitted on the Today show that he tried to fix Fannie and Freddy, and so did the republicans, under bush, but that the dems blocked all of that legislation.
Where did you get those numbers? "The final bill resolving the differences was passed in the Senate 90â8 (one not voting) and in the House: 362â57 (15 not voting). The legislation was signed into law by President Bill Clinton on November 12, 1999." http://en.wikipedia.org/wiki/Glass–Steagall_Act The fact that Republicans controlled the congress was irrelevant since the final bill passed with majority support from both parties.
Hmm, well they sure are good actors. You could easily believe that this was real footage. <iframe width="425" height="349" src="http://www.youtube.com/embed/_MGT_cSi7Rs" frameborder="0" allowfullscreen></iframe> What was it you always say about religion? Having irrational beliefs in something absurd no matter how strong the evidence is to the contrary? LOL!!! You didn't drop religion, you just converted...
fanny never took the liar loans that caused this mess. that was a wall street invention. to blame this all on fanny and cra you have to explain why las vegas and orange county california have so many bad loans
Personally, I think it's a shitty social safety net that inflates these bubbles to such size. "Fear of falling" begets excessive gambling.