Roland Francis wrote:
>
> That's changing, now there will be severe regulations put into place.
>
Date: Tue, 7 Oct 2008 20:35:10 -0700 (PDT)
From: Mervyn Lobo <[EMAIL PROTECTED]>
>
Regulations were in place. The current US administration removed them and
asked the industry to "self-regulate."
>
Mario observes:
>
Here we go again. Another great opportunity to straighten out a false comment,
out of context, and educate Goanetters about how the US system of government
works.
>
The day-to-day oversight of the US Financial Services industry since early 2007
has been in the hands of the Democrats who control the US Congress, Congressman
Barney Frank in the House and Sen. Chris Dodd in the Senate. The latter was
also the largest recipient of political contributions from Fannie Mae and
Freddy Mac political action committees, with Barack Obama as number two,
ostensibly to soften their oversight, which succeeded.
>
In addition, the seeds of the problem were sown in 1977 under the Carter
administration and expanded under the Clinton administration which pushed the
American banking system to provide home loans to low income Americans to
encourage tham to own their own homes instead of renting, often threatening the
banks with legal action if they did not lower their credit standards so that
more low income people could qualify for a loan. This is vote bank politics no
different than what we see in India.
>
When the seven year business cycle slowed, as it always does, many of these
people were unable to repay their home loans and the system crashed.
>
Here are two columns written by a respected economist, Thomas Sowell,
describing the genesis of the financial crisis. He is currently a senior
fellow of the Hoover Institution at Stanford University.
>
http://townhall.com/columnists/ThomasSowell/2008/09/30/bailout_politics
>
http://townhall.com/columnists/ThomasSowell/2008/10/03/do_facts_matter
>
