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  • sappjrk42 sappjrk42 Nov 19, 2010 11:01 AM Flag

    AND THEY BLAME W, GREAT ARTICLE ON THE TRUTH

    Before I get to the bailouts, I have to remind you that in:

    1999, you passed the Financial Services Modernization Act. This repealed Glass-Steagall, the law that had successfully kept main street banking safely separated from Wall Street for seven decades. Even the 1987 market crash had no impact on Main Street credit availability, thanks to Glass-Steagall.
    1997-2010, you allowed the Credit Rating Agencies to change their business model, from Investor pays to Underwriter pays — a business structure known as Payola. This change effectively allowed banks to purchase their AAA ratings, and was ignored by the SEC and other regulators.
    2000, you passed the Commodities Futures Modernization Act. It allowed the shadow banking industry to develop without any oversight by the Commodity Futures Trading Commission, the SEC, or the state insurance regulators. This led to rampant creation of credit-default swaps, CDOs, and other financial weapons of mass destruction — and the demise of AIG.
    2001-04, the Fed, under Alan Greenspan, irresponsibly dropped fund rates to 1%. This set off an inflationary spiral in housing, commodities, and in most assets priced in dollars or credit.
    1999-07, the Federal Reserve failed to use its supervisory and regulatory authority over banks, mortgage underwriters and other lenders, who abandoned such standards as employment history, income, down payments, credit rating, assets, property loan-to-value ratio and debt-servicing ability.
    2004, the SEC waived its leverage rules, allowing the 5 biggest Wall Street firms to go from 12 to 1 to 20, 30 and even 40 to 1. Ironically, this rule was called the Bear Stearns exemption.

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    • I see alot these event occured prior to
      I also would like to add the Clinton Recession along with 9-11 was thevent that caused Greenspans lowering of the fed rate

      He as i agree did allow it to remain to low to long

      to leverage the way these companies did was wrong
      simple

      • 2 Replies to sappjrk42
      • Why do Republicans also try to re-write history........

        Clinton had no Recession........Greenspan raised interest rates 7 times during the summer of 2000 to slow the economy down and help Bush win the election....

        After Bush took office, he raided every program he could to secure funds for bribes to Turkey,Saudia Arabia and Pakistan for his Iran invasion,

        Thie one act started the recession of 2001, Greenspam lowered interest rate 11 times in order to keep the US economy afloat.........sure 911 hurt... not not near as Bush's cuts in economic developments and his Tax cuts to the wealthy

      • Sappyjerk: it was a bill written by R Phil Gramm, passed by Republicans and signed by Bill Clinton to overturn Glass-Steagall. Clinton did not write the bill. His mistake was to sign it. Too bad you Right Wing Nuts keep trying to revise history.

 
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