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post #123 of (permalink) Old 05-21-2010, 03:05 AM
country flag Chip_s_m
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Re: Credit crisis in Greece, others to follow...?

Originally Posted by Rrrainer View Post
i'm sorry, but if you really believe that the dems' shit regarding all things banking deregulation stinks more than the reps' shit, i just can't help you. spin it all you want, but i'm sure deep down you know fully well that it's the right wing that the banks don't need to worry about, not the left wing.
I apologize for responding so slowly. I've been very busy this week.

Ok then, please point me to the specific legislation passed by Republicans that deregulated the banking industry. W Bush didn't deregulate much, certainly not the financial sector. In fact, with Sarbanes-Oxley it's safe to say he actually imposed more regulations on the industry. In general, he was actually a big regulator. You might find this article interesting:

The Bush team has spent more taxpayer money on issuing and enforcing regulations than any previous administration in U.S. history. Between fiscal year 2001 and fiscal year 2009, outlays on regulatory activities, adjusted for inflation, increased from $26.4 billion to an estimated $42.7 billion, or 62 percent. By contrast, President Clinton increased real spending on regulatory activities by 31 percent, from $20.1 billion in 1993 to $26.4 billion in 2001.
Yikes, we've spent almost the last two decades regulating ourselves up the wazoo and we're still in dire economic straits, although I'm sure that's nothing that can't be fixed with even more regulations, right? Right?

It takes a lot of bureaucrats to create and enforce all those regulations. In eight years, Bush increased the federal government's regulatory staff by 91,196 employees. Clinton cut it by 969.
Do you have any evidence that supposed Republican deregulation caused the financial crisis? The deregulation that is most commonly cited is the repeal of Glass-Steagal, but that occurred during the Clinton years. HW Bush didn't deregulate the industry. Not even Reagan passed any major piece of legislation that deregulated finance. However, his predecessor Jimmy Carter, a Democrat, did pass the "Depository Institutions Deregulation and Monetary Control Act". If you believe that deregulation caused the financial crisis (and just to be clear, I don't...see my previous posts) then don't blame Republicans.

Now, don't get me wrong, both parties are in bed with big business. All I'm saying is that when a party that's getting paid by big business is touting new legislation that it claims will crack down on those very same businesses, then we'd be stupid not be skeptical. Why would they bite the hand that feeds them? In my opinion, this legislation just entrenches the big banks, making it harder for smaller local and regional banks to compete. Big banks can just come get a bailout when they screw up, so they don't need to worry about risk. The small banks will still be responsible for their own losses if they mess up, as all businesses should be. These regulations certainly won't help ordinary people, unless of course you work at a big bank. This shouldn't come as a surprise since the big banks are giving money to the people writing the law, Democrats in this case. Republicans do this type of stuff, as well, and it's just as damaging. This time around it's the Dems, though. As I said before, both parties truly do suck.
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