President Clinton, Speaker Gingrich, What the Fuck Were You Thinking?!!
Posted by politicalpartypooper on May 5, 2010
Deregulation in 1979 due to rising interest rates and the incessant whining of Savings & Loans lobbyists greatly contributed to the S&L scandal that cost US taxpayers $125 Biilion in losses and rocked the financial world for almost a decade. The S&L scandal was a direct contributor to the 1990-1991 recession.
The Financial Services Modernization Act of 1999 (Graham-Leach-Bliley) did away with restrictions on the integration of banking, insurance and stock trading imposed by the Glass-Steagall Act of 1933. Under the old law, banks, brokerages and insurance companies were effectively barred from entering each others’ industries, and investment banking and commercial banking were separated. This one act of deregulation stands at the center of a host of other things our government did that caused the Great Depression of 2008-2009, and on and on and on. Let’s ignore this new Great Depression for this post.
Let’s focus instead on two acts of stupidity the likes of which are unexplainable. Both the Bank Bailout and the S&L bailout were directly related to bank deregulation. Both times, it took eight to ten years for the shit to hit the fan, leading one to ask, “What else have we deregulated that’s going to brain-fuck us in a year or two?” I’ll leave you to discuss that here or there or wherever your merry mind wants to take it.
I keep getting sidetracked, and for good reason. This one article could breed hundreds of other articles; all of them written in head-shaking mode. It’s astounding to me how irresponsible our government has been when it comes to maintaining order in our financial markets. Republicans repeatedly say that deregulation is good for business, good for America. “Get out of our way! We know how to regulate ourselves better than Big Guvvment does anyway!”
Uh-huh. And donkeys fly. Democrats are not without blame. The deregulation effort in 1979 that freed up the Thrift industry to Mafiatize and then implode was a Democratic response to the whining of lobbyists.
Good God! How I wish every Congressperson or President-wannabe would read this article! How I wish that future elected officials would read it and learn to never, ever let any industry self-regulate. How I wish they would all be forced to listen to an 120 hour reading of the TARP bill, so they could be reminded, right before they deregulated another industry just waiting to devour America, that sometimes, deregulation is very, very, very bad for America! God, How I wish!
President Clinton, Speaker Gingrich, The Financial Services Modernization Act of 1999 was as mindlocked a bill as any dumbfuck ever wrote or signed in to law. What were you thinking?! Had you forgotten all about the S&L bailout, because it was soooo long ago? Did you forget that when you deregulate banks or financial industries, they are like Kindergartners in a sandbox, who will even go as far as to eat the brown, lumpy, smelly sand if you don’t stop them? What in God’s name were you thinking?
You guys were supposed to be our best and our brightest! Instead you turned out to be two of our biggest idiots! With the total failure of deregulating the Thrift industry right in your faces, you couldn’t see that ignoring Glass-Steagall would lead, one day, to massive bank and insurance industry failures, and monstrous bailouts? You couldn’t foresee that Wall Street and Banks-too-big-to-fail couldn’t control their own greed any better than a crack addict? Are you fucking serious? What were you smoking?
And Newt Gingrich continues to tell us that deregulation is good for America? If any one of my readers votes for him, I’m sending you a gun and a bullet, with an attached note saying, “Do the right thing!”
All of this was avoidable. Fannie and Freddie with their Mafia-style strong-arming, blackmailing banks into making more and more dangerous loans; CDO’s, junk bonds, AIG, Bear Stearns, Lehman Brothers, Goldman Sachs, ..all of it was avoidable had President Clinton and Newt Gingrich had the balls to stand up to billion-dollar lobbyists and say, “Take a fucking hike”. Ω