View Single Post
  #7  
Old 10-01-2008, 01:24 AM
Joshua M. Putnam Joshua M. Putnam is offline
Squirrel
 
Join Date: Apr 2008
Posts: 28
Default

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
Reply With Quote