http://economistsview.typepad.com/economistsview/2010/01/did-low-interest-rates-or-regulatory-failures-cause-the-bubble.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EconomistsView+%28Economist%27s+View+%28EconomistsView%29%29&utm_content=Google+Reader
What fueled the housing bubble? There were three main sources of the liquidity that inflated the bubble. First, the Fed's (and other central banks') low interest policy added cash to the financial system, second, the high savings in Asia, particularly China, along with cash accumulations within oil producing nations, and third, some of the cash was generated endogenously within the system (e.g. by increasing leverage or by diverting other investments into housing and mortgage markets).
Once the fuel was present, something had to allow the bubble to inflate and then do widespread damage, and that's where the regulatory failure comes in. But I don't think the regulatory failure matters much without a large amount of liquidity within the system, and I don't think the large amount of cash in the system is problematic without the regulatory failures.
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
Another attempt by a republican to pass the blame. Your parties policies caused the bubble
this attempt is the BS that giulani is trying to pull with "there were no terrorist attacks on US soil
under Bush" crap
rewriting history with lies to pass the blame
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Response by Riversider
almost 16 years ago
Posts: 13572
Member since: Apr 2009
Things are so simple for some... With ignorance comes clarity.
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Response by mutombonyc
almost 16 years ago
Posts: 2468
Member since: Dec 2008
Don't forget we the people.
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Response by Post87deflation
almost 16 years ago
Posts: 314
Member since: Jul 2009
I think Republicans and Democrats are both to blame (probably the Republicans more than the Democrats), but the important point is that the credit bubble was largely driven by government policy. You'll always have stupid investors, but it takes government intervention to amplify the effects of their stupidity as severely as what happened 2000~2008.
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Response by columbiacounty
almost 16 years ago
Posts: 12708
Member since: Jan 2009
until we stop blaming everyone else for everything, we are never going to get to the root of our problems.
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Response by sjtmd
almost 16 years ago
Posts: 670
Member since: May 2009
Why do use the past tense of the verb "to cause"?
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
"columbiacounty
about 7 hours ago until we stop blaming everyone else for everything, we are never going to get to the root of our problems."
Spoken like a true Republican trying to run from the results of your party's policies!
I guess that because of partisans like you we are doomed to repeat our mistakes..
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Response by alanhart
almost 16 years ago
Posts: 12397
Member since: Feb 2007
petrofritz, did you lose your Playbill or something?
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Response by somewhereelse
almost 16 years ago
Posts: 7435
Member since: Oct 2009
> Another attempt by a republican to pass the blame. Your parties policies caused the bubble
Hmmm... funny... Clinton repealed Glass Steagal... Barney Frank had oversight over FANNIE and says things were fine.
Hmmm.. yeah... talk about passing the buck.
Of course, this thing goes back longer. The mortgage interest deduction, the Fed juicing interest rates (greenspan appointed by a democratic president, too), the overall stupidity of the American public (can we blame a lack of home ec in schools?)
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Response by somewhereelse
almost 16 years ago
Posts: 7435
Member since: Oct 2009
Why is it that the biggest supporters of the democratic party don't actually know anything about the party?
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
Somewhereelse another uninformed lie. Who actually wrote the law that repealed Glass Stiegal? Please answer. Also tell us who voted to repeal it by party. Also whether or not the vote in Congress was such that it was veto proof by Clinton or not.
MEaning who wrote it. Who voted on it and passed. And were there enough votes for it, that Clinton could not have repealed it.
Answer the above or shut up
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Response by Riversider
almost 16 years ago
Posts: 13572
Member since: Apr 2009
This isn't intelligent discusison, this is just sticking to dogma. The history with regards to financial services modernization act and commidty futures modernization act are clear. To argue that democrats only regulate and that republicans only remove regulation is fiction.
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Response by w67thstreet
almost 16 years ago
Posts: 9003
Member since: Dec 2008
Who gives a poop. It's done. Now let's just separate comm bank from life insurance, money managers from I banking and etc etc etc. When you lump all these monies and put it into a pot and tell the head of it you get to keep 50% as bonus and salary, what do you think human nature will do? Yep id leverage up the annuities/life insurance policies and bet the farm on proprietary profits so I could say, itz all mine.
Money managers are supposed to be wary of ibankers and insurance companies should dble chk anythig someone is selling them. There needs to be natural breaks. This one stop shopping banking ctr is a disaster.
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
moron somewhereelse is just showing another example of Republicans who are ashamed of the outcome of their policies trying to rewrite history.
The Glass Steigal act was repealed by Republicans in a Republican veto proof congress. Your boy Phil Gramm wrote the repeal and it is named after him.
This fault is clearly yours no matter how much you lie about it and misdirect the attention.
Take credit for the results your policies have wraught. Stop being a lying coward running away from the consequences of your actions.
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Response by Riversider
almost 16 years ago
Posts: 13572
Member since: Apr 2009
As long as you have government institutions buying mortges(and gov't can't declare chapter 11), there's no real system to deal with risk appropriately.
As long as there's there's an interest rate deduction on mortgage debt, you are encouraging mortgage debt even if its to go on vacation or buy a boat.
As long as this country has ean easy money policy and a balance of trade deficit there will be too much liquidity winding up in financial products.
As long as we don't have mark to market and over the counter trading of all instruments risk won't be priced correctly.
As long as Gov't doesn't institute a no-your customer rule with regards to mortgages, brokers will push the wrong product on a customer.
These should not be partisan issues.
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
People from the party who caused the problems say "These should not be partisan issues"
You caused them. Take credit.
Just like your party caused the S&L Scandal, and The Great Depression. Republicans are 3 for 3!
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Response by bjw2103
almost 16 years ago
Posts: 6236
Member since: Jul 2007
petrfitz, the look on your face when you realize that you've been a closeted Republican this whole time will be priceless. I just hope Terry Richardson is there to immortalize it.
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
BJW another completely useless statement from you. All you are capable of is lame attacks on me and lies that continue to deny the horrible investment that Williamsburg RE actually is.
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Response by bjw2103
almost 16 years ago
Posts: 6236
Member since: Jul 2007
Well, I don't feel too bad continuing here since this thread was already hijacked, so I'll bite: how in the world you can call yourself a Democrat yet continue to espouse your "give me 50% of your take-home pay for my tenement rentals" and "f you - pay me" beliefs, in the same breath, is completely baffling. I don't think calling you a closeted Republican is an attack or insult (which are the things you excel at) - it's just an observation.
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
lease explain your moronic comments because I am a liberal I should not rent places to live to people who need them? Or are you saying that I should not rent to people who dont make enough money to live overly comfortable in Manhattan?
Again lame attacks that dont make any sense.
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Response by LICComment
almost 16 years ago
Posts: 3610
Member since: Dec 2007
petrfitz took some extra crazy pills today.
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
You are calling me crazy when you are the one that thinks:
1 - Bush was a good president
2 - 9/11 didnt happen on Republicans watch
3 - the melt down idnt happen under a republican adminsitration
4 - the deregulation that is the tenant of the republican party that caused economic collapse under the Bush Adminstration is actually Clintons fault
5 - Long Island city is a good investment and not a complete sh!thole
??? Well I think the opposite of all those claims above. So who is craczy
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Response by bjw2103
almost 16 years ago
Posts: 6236
Member since: Jul 2007
petr, you should rent your units, no doubt. But the glee you seem to derive from taking 50% of your renters' take-home is decidedly NOT a very liberal sentiment.
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Response by petrfitz
almost 16 years ago
Posts: 2533
Member since: Mar 2008
The Gramm-Leach-Bliley Act (GLBA), is an act of the 106th United States Republican Majority Controlled Congress (1999-2001) which repealed part of the Glass-Steagall Act of 1933, opening up the market among banking companies, securities companies and insurance companies.
Respective versions of the legislation were introduced in the U.S. Senate by Phil Gramm (Republican of Texas) and in the U.S. House of Representatives by Jim Leach (R-Iowa). The third lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr. (R-Virginia), Chairman of the House Commerce Committee from 1995 to 2001.
The House passed its version of the Gramm-Leach-Bliley Act of 1999 on July 1st by a partisan vote of 343-86 (|Republicans 205–16; Democrats 138–69; Independent/Socialist 0–1),two months after the Senate had already passed its version of the bill on May 6th by a much-narrower 54–44 vote along basically-partisan lines (53 Republicans and one Democrat in favor; 44 Democrats opposed).
This legislation (whose voting margins would easily have overcome any Presidential veto) was signed into law by Democratic President Bill Clinton on November 12, 1999.
'/%3e%3c/g%3e%3c/svg%3e)
Another attempt by a republican to pass the blame. Your parties policies caused the bubble
this attempt is the BS that giulani is trying to pull with "there were no terrorist attacks on US soil
under Bush" crap
rewriting history with lies to pass the blame
Things are so simple for some... With ignorance comes clarity.
Don't forget we the people.
I think Republicans and Democrats are both to blame (probably the Republicans more than the Democrats), but the important point is that the credit bubble was largely driven by government policy. You'll always have stupid investors, but it takes government intervention to amplify the effects of their stupidity as severely as what happened 2000~2008.
until we stop blaming everyone else for everything, we are never going to get to the root of our problems.
Why do use the past tense of the verb "to cause"?
"columbiacounty
about 7 hours ago until we stop blaming everyone else for everything, we are never going to get to the root of our problems."
Spoken like a true Republican trying to run from the results of your party's policies!
I guess that because of partisans like you we are doomed to repeat our mistakes..
petrofritz, did you lose your Playbill or something?
> Another attempt by a republican to pass the blame. Your parties policies caused the bubble
Hmmm... funny... Clinton repealed Glass Steagal... Barney Frank had oversight over FANNIE and says things were fine.
Hmmm.. yeah... talk about passing the buck.
Of course, this thing goes back longer. The mortgage interest deduction, the Fed juicing interest rates (greenspan appointed by a democratic president, too), the overall stupidity of the American public (can we blame a lack of home ec in schools?)
Why is it that the biggest supporters of the democratic party don't actually know anything about the party?
Somewhereelse another uninformed lie. Who actually wrote the law that repealed Glass Stiegal? Please answer. Also tell us who voted to repeal it by party. Also whether or not the vote in Congress was such that it was veto proof by Clinton or not.
MEaning who wrote it. Who voted on it and passed. And were there enough votes for it, that Clinton could not have repealed it.
Answer the above or shut up
This isn't intelligent discusison, this is just sticking to dogma. The history with regards to financial services modernization act and commidty futures modernization act are clear. To argue that democrats only regulate and that republicans only remove regulation is fiction.
Who gives a poop. It's done. Now let's just separate comm bank from life insurance, money managers from I banking and etc etc etc. When you lump all these monies and put it into a pot and tell the head of it you get to keep 50% as bonus and salary, what do you think human nature will do? Yep id leverage up the annuities/life insurance policies and bet the farm on proprietary profits so I could say, itz all mine.
Money managers are supposed to be wary of ibankers and insurance companies should dble chk anythig someone is selling them. There needs to be natural breaks. This one stop shopping banking ctr is a disaster.
moron somewhereelse is just showing another example of Republicans who are ashamed of the outcome of their policies trying to rewrite history.
The Glass Steigal act was repealed by Republicans in a Republican veto proof congress. Your boy Phil Gramm wrote the repeal and it is named after him.
This fault is clearly yours no matter how much you lie about it and misdirect the attention.
Take credit for the results your policies have wraught. Stop being a lying coward running away from the consequences of your actions.
As long as you have government institutions buying mortges(and gov't can't declare chapter 11), there's no real system to deal with risk appropriately.
As long as there's there's an interest rate deduction on mortgage debt, you are encouraging mortgage debt even if its to go on vacation or buy a boat.
As long as this country has ean easy money policy and a balance of trade deficit there will be too much liquidity winding up in financial products.
As long as we don't have mark to market and over the counter trading of all instruments risk won't be priced correctly.
As long as Gov't doesn't institute a no-your customer rule with regards to mortgages, brokers will push the wrong product on a customer.
These should not be partisan issues.
People from the party who caused the problems say "These should not be partisan issues"
You caused them. Take credit.
Just like your party caused the S&L Scandal, and The Great Depression. Republicans are 3 for 3!
petrfitz, the look on your face when you realize that you've been a closeted Republican this whole time will be priceless. I just hope Terry Richardson is there to immortalize it.
BJW another completely useless statement from you. All you are capable of is lame attacks on me and lies that continue to deny the horrible investment that Williamsburg RE actually is.
Well, I don't feel too bad continuing here since this thread was already hijacked, so I'll bite: how in the world you can call yourself a Democrat yet continue to espouse your "give me 50% of your take-home pay for my tenement rentals" and "f you - pay me" beliefs, in the same breath, is completely baffling. I don't think calling you a closeted Republican is an attack or insult (which are the things you excel at) - it's just an observation.
lease explain your moronic comments because I am a liberal I should not rent places to live to people who need them? Or are you saying that I should not rent to people who dont make enough money to live overly comfortable in Manhattan?
Again lame attacks that dont make any sense.
petrfitz took some extra crazy pills today.
You are calling me crazy when you are the one that thinks:
1 - Bush was a good president
2 - 9/11 didnt happen on Republicans watch
3 - the melt down idnt happen under a republican adminsitration
4 - the deregulation that is the tenant of the republican party that caused economic collapse under the Bush Adminstration is actually Clintons fault
5 - Long Island city is a good investment and not a complete sh!thole
??? Well I think the opposite of all those claims above. So who is craczy
petr, you should rent your units, no doubt. But the glee you seem to derive from taking 50% of your renters' take-home is decidedly NOT a very liberal sentiment.
The Gramm-Leach-Bliley Act (GLBA), is an act of the 106th United States Republican Majority Controlled Congress (1999-2001) which repealed part of the Glass-Steagall Act of 1933, opening up the market among banking companies, securities companies and insurance companies.
Respective versions of the legislation were introduced in the U.S. Senate by Phil Gramm (Republican of Texas) and in the U.S. House of Representatives by Jim Leach (R-Iowa). The third lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr. (R-Virginia), Chairman of the House Commerce Committee from 1995 to 2001.
The House passed its version of the Gramm-Leach-Bliley Act of 1999 on July 1st by a partisan vote of 343-86 (|Republicans 205–16; Democrats 138–69; Independent/Socialist 0–1),two months after the Senate had already passed its version of the bill on May 6th by a much-narrower 54–44 vote along basically-partisan lines (53 Republicans and one Democrat in favor; 44 Democrats opposed).
This legislation (whose voting margins would easily have overcome any Presidential veto) was signed into law by Democratic President Bill Clinton on November 12, 1999.