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My goal is to post liberal talking points to combat those from the right.

Wednesday, March 25, 2009

How Did We Get Into This Mess

Seems like no one in the so-called “liberal” media wants to talk about how we got into this economic mess.

The Gramm-Leach-Bliley Act was enacted Nov, 1999, written by Phil Gramm (repub) repealed part of the Glass-Steagall Act. This republican sponsored bill allowed commercial banks to get into the investment services game (read gambling). The bill passed in the republican controlled Congress and after considerable pressure from Congress, was signed by the president.

Then in 2000 the republican controlled Congress passed the Commodity Futures Modernization Act of 2000. This bill repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts.

These two laws unregulated the banking industry allowing the banks and insurance companies to literally gamble with the money they were, up until then, supposed to keep for emergencies. These unregulated banks and insurance companies literally gambled away all the money they had plus money they borrowed. Now they want us to repay their gambling debts.

This is explained a lot better at Democratic Underground:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=132&topic_id=8278459 and


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