Which Political Party is responsible for the current economic problems?

Answers:1   |   LastUpdateAt:2012-11-02 03:58:02  

Question
quaffi
Asked at 2012-09-04 18:09:05
Here are all the facts that tried and not try to regulate the economy. Anyway, I say the problem is all of us, do you agree? MedlinePlus MedlinePlus Deregulation Data 1) of banks was passed under the Gramm Leach Bliley Act (GLBA) in 1999 (Clinton) - althought this allowed banks to expand beyond the traditional regulatory controls, the effects have been both good and bad. It has allowed many of the largest banks to cross various financial services that are more stable (why Citibank, JP Morgan and Bank of America have gone under) MedlinePlus MedlinePlus Fact 2) Regulation of the accounting practices of public corporations was passed under the Sarbanes Oxley (SOX) in 2002 (under Bush). The affection of the bill is still debated. Many argue that the bill has been costly practices affect many actually disadvantge national companies. However, this was an attempt to financial regulation. MedlinePlus MedlinePlus Fact 3) Greenspan warned of problems, nobody heard about Fannie Mae and Freddie Mac: MedlinePlus "The strong belief of investors in the implicit government backing of the GSEs (government sponsored enterprises) does not by itself create problems of safety and soundness of the GSEs but creates systemic risks to the U.S. financial system . as the GSEs become very large, "he said. MedlinePlus MedlinePlus Additional data) The truth of the matter, the current financial problems were a number of factors, see factcheck.org article notes the reasons as: MedlinePlus MedlinePlus -The Federal Reserve, which lowered interest rates after the bursting of the dot-com bubble, making credit cheap. MedlinePlus MedlinePlus Home buyers, who took advantage of easy credit to bid up housing prices excessively.
MedlinePlus -Congress, which continues to support a mortgage tax deduction that gives consumers a tax incentive to buy more expensive homes. MedlinePlus MedlinePlus Real-estate agents, many of whom work for the sellers rather than the buyers and who earned higher commissions from selling more expensive homes. MedlinePlus MedlinePlus -The Clinton administration, which pushed less stringent credit payment requirements for working and middle class families. MedlinePlus MedlinePlus Mortgage brokers, who provide home buyers less credible, subprime adjustable rate with low initial payments, but exploding interest rates. MedlinePlus MedlinePlus -Former Federal Reserve Chairman Alan Greenspan, who in 2004, near the peak of the housing bubble, encouraged Americans to take adjustable rate mortgages. MedlinePlus MedlinePlus -Wall Street firms, who paid too little attention to the quality of the risky loans that grouped into Mortgage Backed Securities (MBS), and issued bonds for those securities as collateral.
MedlinePlus -The Bush administration, which failed to provide needed government oversight increasingly uncertain mortgage-backed securities market. MedlinePlus MedlinePlus -An obscure accounting rule called mark-to-market, which can have the paradoxical result of making assets be worth less on paper than they are in reality during times of panic. MedlinePlus MedlinePlus -Collective delusion, or a belief on the part of all parties that home prices would keep rising forever, no matter how high or how fast they had already gone up. MedlinePlus MedlinePlus There's an old saying in engineering, to have something break takes a single point of failure, and to have a complete collapse and become FUBAR has multiple points of failure. MedlinePlus MedlinePlus Sources:
http://en.wikipedia.org/wiki/Gramm-Leach
Answer1jontreAnswered at 2012-11-02 03:56:04
You missed the Jimma (everyone should have a house) Carter programs that were refined under Clinton.
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