Message from @Neco2040
Discord ID: 534078962138087437
However glass steagal did not cover that
nor was it related
check the actual 4 components
Which actually had nothing to do with the crash
Since what caused the crash was subprime loans
They prevented FDIC banks from dealing in investment securities?
Which was a thing they were allowed to do for ages
And the fact is that only half of it was repealed
The only thing that was repealed from the Glass Steagal act in 1999, was that banks could now be affiliated with firms who engage in underwriting and deal in securities
@Neco2040 However, there was a regulation that infact CAUSED the crash. The community reinvestment act. This act forced banks into making loans that otherwise they wouldn't do on their own. It forced them into making loans to people who couldn't pay them back
Infact if it wasn't repealed in 1999 , the 2008 crash would have unfolded EXACTLY the way it did in 2008.
?
I do somewhat agree, I think we should have regulations that limit the amount of credit people can borrow
But the repeal of glass steagall is what made this such a big recession
@Neco2040 Glass Steagal wasn't repealed
only a part of it which had nothing to do with the crash at hand.
You misunderstood, it was a regulation that caused the crash
not a deregulation
Glass Steagal definitely contributed to the crash. The fact that commerical and investment banking were no longer separate and that banks were able to grow so much worsened the crisis.
@Neco2040 Dude the banking crisis had nothing to do with firms affilitating underwritting and dealing with securities
it was purely due to subprime loans
I understand, I don't argue that all regulation is good, I'm just saying that there should be a limit to how much credit people can borrow
Glass Steagal didn't prevent
It was subprime loans, you even say it your self about credit.
So basically the GLB act repealed a section of the Glass Stegal act which stopped banks affiliating with companies that underwrite or deal with securities. This obviously did nothing for the 2008 crisis
Now the real culprit was the CRA ( community reinvestment act) this act created by the dems forced banks into giving loans to people who couldn’t pay it back. This causes the real boom then bust. The CRA evolved through times and got hard pressed by regulators over the years until in 2008 it all popped.
The CRA was not a static piece of legislation. It evolved over the years from a relatively hands-off law focused on process into one that focused on outcomes. Regulators, beginning in the mid-nineties, began to hold banks accountable in serious ways. Banks responded to this new accountability by increasing the CRA loans they made, a move that entailed relaxing their lending standards.
All this combined with the FEDs weak monetary and contractionary policy caused the crash. Before the crash they had very low interest rates and had a monetary expansion. This as always causes a recession as the malinvestments that take place due to cheap credit turn out to be unprofitable and they are abandoned,resulting in a bust.
How to run an SJW liberal country
1 - Ban white people
2 - Ban straight people
3 - Ban free speech
4 - Anyone who is homophobic or racist executed
5 - Kill anyone you disagree with
That just seems like a straw man SJW country that no SJW would want to live in
I honestly can’t tell if he’s joking or serious
If it was anyone else I would know they are joking but we have to remember this dude said “all Muslims are evil”
@chad 90% of muslims are radical so
i dont know the exact percentage but it's fucking high
Seems very inaccurate
yeah do you mean 90% aren't?
The CRA forced banks to stop redlining (discriminating against POC). The crash happened because we scaled back glass steagall and we had some more deregulations which allowed banks to invest in derivatives with our money
In the United States, Christians are far more radical than Muslims
@Colonel Sanders™ Lol ik ur trolling I’m not falling for the bait
Well, there is some truth to a lot of muslims being "radical" (although 90% is ridiulous), but that is mostly due to American foreign policy @chad
@Neco2040 the CRA tried to stop redlining as it’s intentions and help the “American dream”