John Deering by John Deering

?fh=3a1b77624c2bdc97e20ee20e9e65c8b5

Comments (7) Jump to Comments Form

  1. HUMPHRIES

    HUMPHRIESGenius_badge said, about 1 year ago

    Depends upon who’s receiving and who’s paying.

  2. motivemagus

    motivemagus said, about 1 year ago

    Ironically, it’s the dismantling of the regulations that enabled Savings & Loans and Building Societies (like the one in It’s a Wonderful Life) to diversify in the first place. Thanks, Senator Gramm.

  3. paullkellysr

    paullkellysr said, about 1 year ago

    Are you sure it wasn’t the bad loans underwritten by Fannie and Freddy?

  4. motivemagus

    motivemagus said, about 1 year ago

    Yeah, Paul, I am very sure. Reducing government oversight (or, in the case of derivatives, preventing any regulation) led straight to this situation. Fannie and Freddie contributed, but the bulk of the loans only came about because other companies thought they could make a buck and spread the risk through the sale of derivatives. It didn’t work. Phil Gramm (who also funded porn movies - fun guy, eh?) prevented any regulation of the new derivatives – something that people on Wall Street are asking for.

  5. paullkellysr

    paullkellysr said, about 1 year ago

    Well, I’ll agree with the reduced oversight of Freddie and Fanny that the Dems (Franks and Dodds) blocked - yea it was the lack of oversight of Mae and Mac

  6. motivemagus

    motivemagus said, about 1 year ago

    You’re missing the Phil Gramm part, Paul. He was (and probably is) McCain’s economic advisor, and would probably be his choice for Secretary of the Treasury. The blocking of derivatives regulation – probably the single largest influence on this – was all his. Had we had some controls, it is at least possible that Fannie and Freddie would have failed, but they would not have taken down the rest of the economy with them.

  7. bell3rose1a

    bell3rose1a said, about 1 year ago

    First of all “It’s a Wonderful Life” is homage to the “New Deal”. That there would be affordable home loans for the working poor by a government sponsored enterprises such as (Fanny and Freddy). Next, in the movie, Mr. Potter purloined money that uncle Billy was to deposit. Like wise, what you have now is not so much a bailout but a give back to the people of the United States. The money that was entrusted to be invested in secure financial instruments were at least mishandled, malfeasance, or just plain stolen.