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Main cause of economic meltdown approved by US Govt in Dec 2000

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posted on Oct, 26 2008 @ 06:23 PM
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This is being discussed on "60 Minutes" as I type this...

In December 2000, President Clinton signed into law the "Commodity Futures Modernization Act."

Within this legislation, credit default swaps were removed from federal oversight. Also, on page 262 of the bill, Wall St. was pretty much given free-reign from being prosecuted under any state gambling laws.

Prior to this legislation, credit default swaps were ILLEGAL!

So, the credit default swaps that have DECIMATED the global economy were "put on the table" by the United States Congress & given a big thumbs-up by President Clinton.

Dammit, dammit, dammit!
It's our own fault for not paying attention to our government!

gotta do more research on this, but please, anyone with expertise, please help!



[edit on 26-10-2008 by alien]




posted on Oct, 26 2008 @ 06:33 PM
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Clinton is not the architect of this collapse.



From Wiki

The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on Dec. 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.[2]

The companion bill (S.3283) was introduced in the Senate on Dec. 15th, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.

Given the above-stated chronology, it would appear that the House and Senate versions of the bill were introduced just prior to the Christmas holiday in December of 2000, following George W Bush's (first) election (in November of 2000), while then-President Clinton was serving out his final days as President. The bill was never debated by the House or Senate. The bill by-passed the substantive policy committees in both the House and the Senate so that there were neither hearings nor opportunities for recorded committee votes. In substance, it appears that the leadership of the Republican-controlled Senate and House incorporated the deregulation of credit default swaps into an omnibus budget bill (without hearings or recorded votes)at a time when the outgoing president was in no position to veto anything.


Clinton may have signed it but it wasn't his idea, it was a push from the Republicans. One of them, Sen. Phil Gramm, is a former economic adviser to McCain. Here's a bit about him.



From Wiki

Some economists believe that the 1999 legislation spearheaded by Gramm and signed into law by President Clinton -- the Gramm-Leach-Bliley Act -- was partially to blame for leading to the 2007 subprime mortgage crisis and 2008 global economic crisis.[10]. The Act is most well-known for repealing much of the Glass-Steagall Act, which had regulated the financial services industry. Gramm responded to such criticism by stating that he saw "no evidence whatsoever" that the subprime mortgage crisis was caused in any way "by allowing banks and securities companies and insurance companies to compete against each other."[11]

The Washington Post in 2008 named Gramm one of seven "key players" responsible for winning a 1998-1999 fight against regulation of derivatives trading. [12] Gramm was later critical to passage of the Commodity Futures Modernization Act of 2000, which kept derivatives transactions, including those involving credit default swaps, free of government regulation.[13]

2008 Nobel Laureate in Economics Paul Krugman has called Gramm "the high priest of deregulation" and has listed him as the number two person responsible for the economic crisis of 2008 behind only Alan Greenspan.[14][15]

On October 14, 2008, CNN ranked Gramm number seven in its list of the 10 individuals most responsible for the current economic crisis.



The blame reaches much further than Clinton...

[edit on 26-10-2008 by Parabol]

[edit on 26-10-2008 by Parabol]



posted on Oct, 26 2008 @ 06:34 PM
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Someone was onto this in September...


www.huffingtonpost.com...



posted on Oct, 26 2008 @ 06:38 PM
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reply to post by Parabol
 

Parabol, you're right, Clinton wasn't the catalyst even though he did sign it into law....seems like many folks had a hand in this, including Alan Greenspan & John McCain.

Republicans AND Democrats sponsored the bill, so it looks like bipartisanship knows no bounds when it comes to gettin' $$$ made for some old pals.

The more I read, the worse it gets!

Parabol, thank you for the Wiki linky!!!


[edit on 26-10-2008 by ezziboo]

[edit on 26-10-2008 by ezziboo]



posted on Oct, 26 2008 @ 06:49 PM
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And, dammit, McCain & Gramm defended the bill in MAY 2008 (!!) because it was such a good idea!!! They didn't want any government regulatory oversight!!!

Blaaarrrggghhhh....sorry for the exclamation points...I'm gobsmacked.


www.baltimorechronicle.com...

MODS: can the thread title be changed? I want to remove the Clinton reference...thank you!

[edit on 26-10-2008 by ezziboo]

[edit on 26-10-2008 by ezziboo]



posted on Oct, 26 2008 @ 07:01 PM
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www.homesalesnetwork.com...

I think you'll find that the origins go back even further with Clinton to 1995 which spawned not only the sub-prime loan, buth the securitization of them.

I fact, If I remember correctly your banks were under notice of pentaly if they did not issue them. So as the qualified buyers ran out thhe banks had to come up with more and more creative ways of issuing these loans to meet the act.

I believe you will also find that Clinton is on record in a recent interview musing whether he caused this problem.

Finally, and please correct me if I am wrong, your Repubs in both 2002 and 2005 by McCain himself no less on the latter) tried to change this act to cool off the growing prob but your Dem controlled house voted them down both times.

JK



posted on Oct, 26 2008 @ 07:05 PM
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posted on Oct, 26 2008 @ 07:08 PM
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reply to post by ezziboo
 


The title says "approved by Clinton".......he did approve it, but not originate it.

Now, yes, the CRA is a major contributor to this economic disaster, but this deregulation of the market allowing legalized gambling was a last minute insertion that our idiot Congress (both sides) did not read....and the prez signed it...sounds like malfeasance on both sides of the aisle.....



posted on Oct, 26 2008 @ 07:08 PM
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reply to post by leo123
 


Leo (JK), thanks for reminding me....I forgot all about Fannie & Freddie in this mess.

The government of my very own country MADE this meltdown happen, to the detriment of the global economy.




posted on Oct, 26 2008 @ 07:12 PM
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en.wikipedia.org...

Here's a Wiki timeline - for what it's worth.

JK



posted on Oct, 26 2008 @ 07:13 PM
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Well all you have to do is look at my signature.
To realize WHY Alan GreenThief would've been in on and/or the instigator of something like this.



posted on Oct, 26 2008 @ 07:14 PM
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Originally posted by habu71
reply to post by ezziboo
 


The title says "approved by Clinton".......he did approve it, but not originate it.

Now, yes, the CRA is a major contributor to this economic disaster, but this deregulation of the market allowing legalized gambling was a last minute insertion that our idiot Congress (both sides) did not read....and the prez signed it...sounds like malfeasance on both sides of the aisle.....


Habu, the CRA also included verbiage allowing credit default swaps AND not allowing any federal oversight regarding CDS...which is tantamount to gambling in the eyes of some (I know that investing is one big crap shoot, but at least certain aspects are subject to regulation by the SEC).

And, I've asked if mods can remove the Clinton reference from the thread title because, as others have said, it goes MUCH deeper than Clinton.

[edit on 26-10-2008 by ezziboo]



posted on Oct, 26 2008 @ 07:19 PM
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It is really neither sides fault. It's the people who back them, advisers and people with money. Which many times end up being the same person. Heck, look at our government. Bush with Harken Energy, Cheney with Halliburton, and Paulson with Goldman Sachs. These are some obvious ones but businessmen run our government. It's not even a secret, which infuriates me that we allow it to continue like this. It is not Rep vs Dem, it's us vs. them.

Oh, and maybe if the Office of Thrift Supervision had done it's job we'd be okay. (
Seriously, 'thrift supervision'? We have an office for that?)



posted on Oct, 26 2008 @ 07:22 PM
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Originally posted by Interestinggg
Well all you have to do is look at my signature.
To realize WHY Alan GreenThief would've been in on and/or the instigator of something like this.


I don't blame Greenspan in the least. As he susinctly put it this week, the biggest mistake he made was believing that banks would act in a manner that would ensure their survival.

They obviously didn't.

IMO Greenspan's legacy will alway remain as the man who single handedly prevented the world's financial markets from completely imploding during the early hours on the day after the Crash in October 1987.

JK

[edit on 26-10-2008 by leo123]



posted on Oct, 26 2008 @ 07:26 PM
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Originally posted by leo123

I don't blame Greenspan in the least. As he susinctly put it this week, the biggest mistake he made was believing that banks would act in a manner that would ensure their survival.
[edit on 26-10-2008 by leo123]




“You had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis. You were advised to do so by many others,” said Representative Henry A. Waxman of California, chairman of the committee. “Do you feel that your ideology pushed you to make decisions that you wish you had not made?”

Mr. Greenspan conceded: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.”


...so his flaw was not realizing people were greedy? How threatened is their survival when they can get a bailout?



posted on Oct, 26 2008 @ 07:31 PM
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Originally posted by Parabol

Originally posted by leo123

I don't blame Greenspan in the least. As he susinctly put it this week, the biggest mistake he made was believing that banks would act in a manner that would ensure their survival.
[edit on 26-10-2008 by leo123]




“You had the authority to prevent irresponsible lending practices that led to the subprime mortgage crisis. You were advised to do so by many others,” said Representative Henry A. Waxman of California, chairman of the committee. “Do you feel that your ideology pushed you to make decisions that you wish you had not made?”

Mr. Greenspan conceded: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.”


...so his flaw was not realizing people were greedy? How threatened is their survival when they can get a bailout?


Fair comment.



posted on Oct, 26 2008 @ 07:47 PM
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reply to post by Parabol
 


Nicely summed up, Parabol...too many fingers in this pie to lay blame on just one or two individuals or parties.

But, their fingers will all come out clean, won't they? While the rest of the world burns....



posted on Oct, 26 2008 @ 07:58 PM
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Actually, some where paying attention in December of 2000.

I recall them being ridiculed and marginalized.

I just can't remember the names... can you?



posted on Oct, 26 2008 @ 08:31 PM
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It was both parties not just dems not just repubs it was both of them.. The ALL were getting their wallets lined so as usual the 2 party gets paid and the taxpayer gets screwed.



Heres Bush calling for the same junk to be peddled. Add that to all the Dems in the great video a few posts up and it sums it up.



posted on Oct, 26 2008 @ 10:43 PM
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repealling the GLASS- Seagall act was a prerequisite to this further act of premeditated corruption talked about here

remember glass seagall act was enacted after Great depression 1 to make sure the causes of GD 1 did not occur again. But when capitalist markets in a Central bank system need more and more debt to keep from collapsing amongst the weight of debt (that needs to be serviced) the strings will be pulled , even when we know they are careless, besides it gives the INSIDERS a several year window to reap some profits, before the collapse.

OH and the majority of both republican and democratic party members belong to the real MAJORITY PARTY In washington, the wallstreet/ establishment party ..........wake up america........i know you may be groggy and ignorant fairy tales about dems rushing in to save the economy now seem to give you more piece of mind..........but really you would be wiser to let yourself realize we have been taken for a ride....the initial anger and pain may be worth what you could gain in preparation and you could save more $ or possibly decide to willingly step off the ignorance is bliss ride while we still have a constitution

[edit on 26-10-2008 by cpdaman]







 
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