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[quote=jficquette]
“Here’s the lead of a New York Times story on Sept. 11, 2003: “The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.”
John[/quote]

Hold the phone. Let’s try a couple of more quotes from that exact article:

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac…

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

…

The administration’s proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors. Nor would it remove the companies’ exemptions from taxes and antifraud provisions of federal securities laws.

Let’s see, the Republican proposal is limited to Fannie/Freddie, would keep them exempt from fraud charges, would continue to implicitly guarantee bailout, and would transfer control from Congress to the Executive branch…and you think that was great legislation?

Shoot, if I were a Senator or Representative, I wouldn’t agree to giving control to the White House either!

http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63

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I guess I pretty much agree with your statement above, CA Renter.

Protect the little guy, let the people who did the damage take it in the shorts.

Man is it going to be a long nasty winter. Good luck to all.

[svelte]

I guess I pretty much agree with your statement above, CA Renter.

Protect the little guy, let the people who did the damage take it in the shorts.

Man is it going to be a long nasty winter. Good luck to all.

[svelte]

I guess I pretty much agree with your statement above, CA Renter.

Protect the little guy, let the people who did the damage take it in the shorts.

Man is it going to be a long nasty winter. Good luck to all.

[svelte]

I guess I pretty much agree with your statement above, CA Renter.

Protect the little guy, let the people who did the damage take it in the shorts.

Man is it going to be a long nasty winter. Good luck to all.

[svelte]

I guess I pretty much agree with your statement above, CA Renter.

Protect the little guy, let the people who did the damage take it in the shorts.

Man is it going to be a long nasty winter. Good luck to all.

[svelte]

[quote=jonnycsd]The OP insinuates that repealing Glass Stegal and allowing banks, insurance co’s and securities dealers to be owned by the same parent company caused the housing bubble / mortgage mess.

Can anyone explain how these two things are even remotely related?

Thanks![/quote]

Jonny,

I agree with you.

The point of the article, written in 1999, is that repealing the Glass Stegal could lead to this:

The separation of banking and the stock exchange was ordered in response to revelations of the gross corruption and manipulation of the market by giant banking houses, above all the House of Morgan, which organized huge corporate mergers for its own profit and awarded preferential access to share issues to favored politicians and businessmen. Such insider trading played a major role in the speculative boom which preceded the 1929 crash.

Unless someone can explain it to me, I don’t see in any way how this type of a situation (which the author predicted could occur with the repeal of the Glass Stegal act) caused the problem we are now experiencing.

I thought this board had been in general agreement that it was the separation of mortgage lending and the stock market that caused the situation we are in, not the merging of institutions.

i.e., separating mortgage lending from the holders of the loans on Wall Street caused the lenders not to care one iota if the loans could be repaid.

[svelte]

[quote=jonnycsd]The OP insinuates that repealing Glass Stegal and allowing banks, insurance co’s and securities dealers to be owned by the same parent company caused the housing bubble / mortgage mess.

Can anyone explain how these two things are even remotely related?

Thanks![/quote]

Jonny,

I agree with you.

The point of the article, written in 1999, is that repealing the Glass Stegal could lead to this:

The separation of banking and the stock exchange was ordered in response to revelations of the gross corruption and manipulation of the market by giant banking houses, above all the House of Morgan, which organized huge corporate mergers for its own profit and awarded preferential access to share issues to favored politicians and businessmen. Such insider trading played a major role in the speculative boom which preceded the 1929 crash.

Unless someone can explain it to me, I don’t see in any way how this type of a situation (which the author predicted could occur with the repeal of the Glass Stegal act) caused the problem we are now experiencing.

I thought this board had been in general agreement that it was the separation of mortgage lending and the stock market that caused the situation we are in, not the merging of institutions.

i.e., separating mortgage lending from the holders of the loans on Wall Street caused the lenders not to care one iota if the loans could be repaid.

[svelte]

[quote=jonnycsd]The OP insinuates that repealing Glass Stegal and allowing banks, insurance co’s and securities dealers to be owned by the same parent company caused the housing bubble / mortgage mess.

Can anyone explain how these two things are even remotely related?

Thanks![/quote]

Jonny,

I agree with you.

The point of the article, written in 1999, is that repealing the Glass Stegal could lead to this:

The separation of banking and the stock exchange was ordered in response to revelations of the gross corruption and manipulation of the market by giant banking houses, above all the House of Morgan, which organized huge corporate mergers for its own profit and awarded preferential access to share issues to favored politicians and businessmen. Such insider trading played a major role in the speculative boom which preceded the 1929 crash.

Unless someone can explain it to me, I don’t see in any way how this type of a situation (which the author predicted could occur with the repeal of the Glass Stegal act) caused the problem we are now experiencing.

I thought this board had been in general agreement that it was the separation of mortgage lending and the stock market that caused the situation we are in, not the merging of institutions.

i.e., separating mortgage lending from the holders of the loans on Wall Street caused the lenders not to care one iota if the loans could be repaid.

[svelte]

[quote=jonnycsd]The OP insinuates that repealing Glass Stegal and allowing banks, insurance co’s and securities dealers to be owned by the same parent company caused the housing bubble / mortgage mess.

Can anyone explain how these two things are even remotely related?

Thanks![/quote]

Jonny,

I agree with you.

The point of the article, written in 1999, is that repealing the Glass Stegal could lead to this:

The separation of banking and the stock exchange was ordered in response to revelations of the gross corruption and manipulation of the market by giant banking houses, above all the House of Morgan, which organized huge corporate mergers for its own profit and awarded preferential access to share issues to favored politicians and businessmen. Such insider trading played a major role in the speculative boom which preceded the 1929 crash.

Unless someone can explain it to me, I don’t see in any way how this type of a situation (which the author predicted could occur with the repeal of the Glass Stegal act) caused the problem we are now experiencing.

I thought this board had been in general agreement that it was the separation of mortgage lending and the stock market that caused the situation we are in, not the merging of institutions.

i.e., separating mortgage lending from the holders of the loans on Wall Street caused the lenders not to care one iota if the loans could be repaid.

[svelte]

[quote=jonnycsd]The OP insinuates that repealing Glass Stegal and allowing banks, insurance co’s and securities dealers to be owned by the same parent company caused the housing bubble / mortgage mess.

Can anyone explain how these two things are even remotely related?

Thanks![/quote]

Jonny,

I agree with you.

The point of the article, written in 1999, is that repealing the Glass Stegal could lead to this:

The separation of banking and the stock exchange was ordered in response to revelations of the gross corruption and manipulation of the market by giant banking houses, above all the House of Morgan, which organized huge corporate mergers for its own profit and awarded preferential access to share issues to favored politicians and businessmen. Such insider trading played a major role in the speculative boom which preceded the 1929 crash.

Unless someone can explain it to me, I don’t see in any way how this type of a situation (which the author predicted could occur with the repeal of the Glass Stegal act) caused the problem we are now experiencing.

I thought this board had been in general agreement that it was the separation of mortgage lending and the stock market that caused the situation we are in, not the merging of institutions.

i.e., separating mortgage lending from the holders of the loans on Wall Street caused the lenders not to care one iota if the loans could be repaid.

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[quote=fat_lazy_union_worker]This is so frickin unbelievable. I mean, this really isn’t a free market anymore is it if the gov starts to do this?

[/quote]

It hasn’t been a free market in a long, long time. They began stacking the deck quite awhile ago…

http://www.nyse.com/press/circuit_breakers.html

And, historically speaking, most of the worst days in the stock market occur in October. Guess what is right around the corner?

[svelte]

[quote=fat_lazy_union_worker]This is so frickin unbelievable. I mean, this really isn’t a free market anymore is it if the gov starts to do this?

[/quote]

It hasn’t been a free market in a long, long time. They began stacking the deck quite awhile ago…

http://www.nyse.com/press/circuit_breakers.html

And, historically speaking, most of the worst days in the stock market occur in October. Guess what is right around the corner?

[svelte]

[quote=fat_lazy_union_worker]This is so frickin unbelievable. I mean, this really isn’t a free market anymore is it if the gov starts to do this?

[/quote]

It hasn’t been a free market in a long, long time. They began stacking the deck quite awhile ago…

http://www.nyse.com/press/circuit_breakers.html

And, historically speaking, most of the worst days in the stock market occur in October. Guess what is right around the corner?

[svelte]

[quote=fat_lazy_union_worker]This is so frickin unbelievable. I mean, this really isn’t a free market anymore is it if the gov starts to do this?

[/quote]

It hasn’t been a free market in a long, long time. They began stacking the deck quite awhile ago…

http://www.nyse.com/press/circuit_breakers.html

And, historically speaking, most of the worst days in the stock market occur in October. Guess what is right around the corner?

[Author]

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