Quote:
Originally Posted by justplugit
Good stuff, Hoop, Thanks.
I liked the quote-" Everybody deluded themselves,thinking they could throw out the old rules of banking."
We never,ever, would been involved in this mess if the old rules weren't thrown out, imho.
My understanding of the old rules of needing 20% down to obtain a mortgage and a limit on the amount you could borrow determined by your income was part of the Glass-Spigel act.
That act was thrown out during the Clinton Administration, allowing no down payment and inerest only payment loans. From what i see it was to make houses affordable to everyone and therefore a political move to get votes.
Looks to me like we were sold out for votes. 
I would still like to know who initiated and threw out the Glass-Spigel act.
Can anybody shed any light on that?  I have sent my congressman the question of who and why,but feel it will be awhile before i get an answer. |
http://www.investopedia.com/articles...603.asp?Page=1
Conclusion
Although the barrier between commercial and investment banking aimed to prevent a loss of deposits in the event of investment failures, the reasons for the repeal of the GSA and the establishment of the Gramm-Leach-Bliley Act show that even regulatory attempts for safety can have adverse effects.
Dave, very good question
I bet they will be a while getting back to you
Maybe I should raise the question to my congressman as well
I don't think many around here have a clue what or how clueless Barney Frank is
he is part of the problem, time for him to be part of the solution or join the unemployed
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