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Old 10-01-2008, 01:24 AM
Joshua M. Putnam Joshua M. Putnam is offline
Join Date: Apr 2008
Posts: 28

Certainly there are instances of deregulation that come to mind that would have been better off not have occurring; the Gramm-Leach-Bliley Act is one that comes to mind.

If the bailout had passed than perhaps it would have provided a floor for which investment banking to stabalize, and things would return to normal...however, the US government is in no position to put itself into debt further; the creation of all that money out of nowhere would certainly be bad towards inflation.

As for placing blame, sub-prime mortgages and securitization seem to have a strong role, allowing for bad loans and the sale and transaction of said loans certainly is playing a role in the collapse of investment banks.

Regulation and deregulation is not at the heart of this crisis, it's all held in hindsight what we could have done
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