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HappySqurriel on 18 September 2008
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ManusJustus said:
Kasz216 said:

Keeping there heads down because they are the same people that blocked McCain's attempts at getting regulation to stop this kinda thing from happening in the first place.

Just to clear things up:

McCain was for the deregulation that caused this mess in the first place, specifically supporting the Gramm-Leach-Biley Act.  Phill Gramm, was the main guy behind the bill, and is now McCain's economic advisor.

http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Act

This wasn't just the work of one act, the Community Reinvestment Act ( http://en.wikipedia.org/wiki/Community_Reinvestment_Act ) is one of the main reasons why there was the expansion of sub-prime mortgages, which were (mostly) given to people who couldn't afford them. On top of that this situation was made (dramatically) worse because the federal reserve pumped money into the system at an inflationary pace.

Had George Bush's 2003 ammendment of the Community Reinvestment Act been passed, or John McCain's efforts in 2005 to increase regulation of Fanny May and Freddy Mac had gone through, it is unlikely that the market would have risen as high and we wouldn't have as far to fall.