Comments on: Government Regulation in the Housing and Financial Crisis http://moneyning.com/housing/government-regulation-in-the-housing-and-financial-crisis/ A personal finance blog where we share insights on carefully saving money, investing, early retirement, mortgages, stocks because the little things matter in achieving financial freedom! Sat, 21 Nov 2009 10:57:14 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Andrea http://moneyning.com/housing/government-regulation-in-the-housing-and-financial-crisis/comment-page-1/#comment-11517 Andrea Wed, 05 Nov 2008 17:04:34 +0000 http://moneyning.com/?p=1578#comment-11517 You left out a key component, which was the passage of the Gramm-Leach-Bliley Act, which overturned Glass-Steagall. Glass-Steagall was enacted after the Depression to separate the activities of banks and brokerage firms because the feeling was that banks should be secure and not be tempted into activities that would jeopardize depositor assets. Gramm-Leach-Blilely, written by Republicans but signed into law by Clinton in 1999, allowed the big mergers we've seen over the last several years. Without that, I doubt that we would have had the collateralized mortgage obligation market expand to the extent that it did, which is a big part of the problem. On the other hand, we also wouldn't have had the fake economic boom we've had over the last few years either. It was in the political best interest of incumbents to allow the bubble to keep growing for as long as they could. You left out a key component, which was the passage of the Gramm-Leach-Bliley Act, which overturned Glass-Steagall. Glass-Steagall was enacted after the Depression to separate the activities of banks and brokerage firms because the feeling was that banks should be secure and not be tempted into activities that would jeopardize depositor assets. Gramm-Leach-Blilely, written by Republicans but signed into law by Clinton in 1999, allowed the big mergers we’ve seen over the last several years. Without that, I doubt that we would have had the collateralized mortgage obligation market expand to the extent that it did, which is a big part of the problem. On the other hand, we also wouldn’t have had the fake economic boom we’ve had over the last few years either. It was in the political best interest of incumbents to allow the bubble to keep growing for as long as they could.

]]> By: Ren http://moneyning.com/housing/government-regulation-in-the-housing-and-financial-crisis/comment-page-1/#comment-11505 Ren Tue, 04 Nov 2008 17:31:29 +0000 http://moneyning.com/?p=1578#comment-11505 Hi, When there is problem, people will start pointing their fingers at one another. But do remember, every time we point one finger at another person, 4 fingers will be pointing back at us. Finding out who created the problem from the beginning does not solve the problem. And even if we find out who did it, how will it benefits us anyway? At this time of turmoil, we should be looking hard at ourselves. Spend more time planning and thinking of ways to survive this crisis. Did the government do the right thing and will it do the right thing in the future? I will be delighted if they can competently do something right. But generally, I feel that we shouldn't depend on the government to do the right things or things right... in anyway, they will be paid handsomely no matter what the world becomes and we will be carrying the bad debts they have bought. I am thinking of ways to save up for the tax, what are you doing? If you still do not know what to do, just visit my crisis cartoon blog to unwind first ... Great Post! Ren :) Hi,

When there is problem, people will start pointing their fingers at one another. But do remember, every time we point one finger at another person, 4 fingers will be pointing back at us.

Finding out who created the problem from the beginning does not solve the problem. And even if we find out who did it, how will it benefits us anyway?

At this time of turmoil, we should be looking hard at ourselves. Spend more time planning and thinking of ways to survive this crisis.

Did the government do the right thing and will it do the right thing in the future?

I will be delighted if they can competently do something right. But generally, I feel that we shouldn’t depend on the government to do the right things or things right… in anyway, they will be paid handsomely no matter what the world becomes and we will be carrying the bad debts they have bought. I am thinking of ways to save up for the tax, what are you doing?

If you still do not know what to do, just visit my crisis cartoon blog to unwind first …

Great Post!

Ren :)

]]> By: Joe http://moneyning.com/housing/government-regulation-in-the-housing-and-financial-crisis/comment-page-1/#comment-11504 Joe Tue, 04 Nov 2008 17:25:08 +0000 http://moneyning.com/?p=1578#comment-11504 I don't think there's a way to figure out exactly who's at fault because everyone played a role in this whole economic mess. All parties' action is interrelated to each other I'm sure everybody is at fault!! Good post. It's always great to learn more information! I don’t think there’s a way to figure out exactly who’s at fault because everyone played a role in this whole economic mess. All parties’ action is interrelated to each other I’m sure everybody is at fault!!

Good post. It’s always great to learn more information!

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