On Mar 21, 9:40*pm, "Calif Bill" wrote:
"Keith Nuttle" wrote in message


Except the Clinton administration in forcing banks to make loans to
unqualified individuals because it was everyone's right to own a home.

Clinton and Congress just elaborated on previous policies. *Worst was
Clinton and Rubin and removing Glass-Steagall act of 1933.

this was after clinton had been impeached and was severely weakened.
phil gramm, whose wife was a high executive at enron, wanted to
continue treating the middle class like a piggy bank. so he introduced
the bill allowing credit default swaps to exist unregulated. of
course, his wife made a killing in enron by deregulating energy
companies allowing her and her husband to swindle hundreds of
thousands of employees and stockholders of enron.

typical GOP economic policies.


*Allowed these
banks to become insurance companies, brokerage houses, etc. *Set us up for a
real economic disaster as there was no checks and balances between the
different factions. *Bank sells bad loans through their brokerage arm. *The
loans are insured by their inhouse insurance company. *As long as the
conglomerate made immense profits on the loan, who cares if none of what
they sold had any value? *Unfortunately all that profit from the excess cost
to insure a bad loan, and the selling of the bad loan all went back in the
same pot. *Now the loans tank, and the insurance company has no money to pay
the loss, as they have invested it with the same company brokerage house,
and paid a huge premium to the brokerage arm making all look like they made
lots of money. *But the underlying securities that the insurance company
bought were overvalued by the brokerage arm. *No checks and balances and
nothing to write out the loss check against.-

in 2000 right before bush took office, the total amount of credit
default swaps was $920 billion

when he left office, the amount was $62 trillion.

this happened under a republican president and a republican congress.