Wednesday, September 17, 2008

Makes You Wonder

Now I don't want this to become a political blog, but sometimes there are things that you just cannot let slip by. The other day Senator McCain said that the problems with the collapse of our large investment banks are primarily due to the fact that the regulations governing them were put in place in the 1930's and are now outdated.

Pardon me? He must have forgotten the Financial Modernization Act of 1999 that specifically undid many of the regulations put into place in 1933 after the Great Depression. That act basically broke down the barriers between banks, investment companies and other financial institutions.

Regardless of which political party may or may not be primarily responsible for our current mess, you should at least know the facts about what has contributed to it.


Marty Freeman said...

I agree. Also, it is hard to comprehend that in the 80's, if a person was buying a house and could afford a $150,000 home, that is what was offered, shown by the real estate agent and was purchased. In the 90's and beyond they were shown $250,000 homes with the promise "we can get you into this home". After their mortgage was adjusted, they could not afford the payments, coupled with their home now worth far less than they owed. Where does the accountability lay?

berklingaly said...