/biz/ - Business & Finance

The movie conveniently forgot that the goberment of Bill Clinton in the 90s wanted to hype the dream of ''everyone should get a home'', so bankers viewed this as goberment will do anything to back up the housing bonds, which is why those bonds were seen as never risky, then bankers pushed them on their institutional clients, to get fat fees from those, & the bubble was humongous. Then it exploded because GDP will never rise like a fucking bubble.
1998: Sec. Andrew Cuomo Defends Affirmative Action Mortgage Policy
https://www.youtube.com/watch?v=9TWOPDN5Va0
Andrew Cuomo admits "affirmative action" determined housing policy during his tenure at HUD. New York's new governor defiantly explains how riskier loans with likely a higher default rate would be encouraged under the Clinton Administration. Of course the same policies were subsequently followed by the Bush Administration.
So to avoid the housing collapse, we are supposed to believe the SEC or some other group of regulators were supposed to have had the spine to overrule the stated Clinton Administration official policy on mortgage finance at the time? These regulators presumably were also supposed to have stood up to Congress, mainstream economists, academia & the entire media establishment?


25 People to Blame for the Financial Crisis
The good intentions, bad managers & greed behind the meltdown
http://content.time.com/time/specials/packages/completelist/0,29569,1877351,00.html
President Clinton's tenure was characterized by economic prosperity & financial deregulation. Among his biggest strokes of free-wheeling capitalism was the Gramm-Leach-Bliley Act, which repealed the Glass-Steagall Act, a cornerstone of Depression-era regulation. He also signed the Commodity Futures Modernization Act, which exempted credit-default swaps from regulation. In 1995 Clinton loosened housing rules by rewriting the Community Reinvestment Act, which put added pressure on banks to lend in low-income neighborhoods.