Regulation of banking and current crisis -- the loosening wasn't just under Reps but also CLINTON ..

[cloudythescribbler]

http://tpmcafe.talkingpointsmemo.com/2008/03/22/paul_krugmans_hypocrisy/

Paul Krugman's Hypocrisy
By Jonathan Taplin - March 22, 2008, 12:06PM
Paul Krugman has been a Clinton Restorationist-- a big Hillary supporter and Obama's fiercest critic in the progressive punditocracy. So today he writes a very good piece laying out the regulatory disasters that led to our current economic crisis. He tells a tale of how after the Great Depression, Democrats worked to protect the banking system from runs, by enacting a split of Investment Banks and Commercial Banks. But, Krugman points out.


Wall Street chafed at regulations that limited risk, but also limited potential profits. And little by little it wriggled free — partly by persuading politicians to relax the rules, but mainly by creating a “shadow banking system” that relied on complex financial arrangements to bypass regulations designed to ensure that banking was safe.

But never once in the whole article does he point out who yielded to the enticements of Wall Street--who was responsible for destroying the Glass-Steagall separation of Banks and Investment Banks--Bill Clinton.

[SoCalDem]

1. It started with Reagan, and has continued unabated

Banks & financial institutions have a lot of power over politicians, and they are not afraid to wield it.

As long as we have the campaign system we have, banks willl always get legislation that allows them to run amok..

It's hard to put a bit & bridle on them, and then go to them and ask for campaign payola every few years..

[napi21]

2. I agree that BC has some responsibility too, but this mess, and

MANY of the other messes we have REALLY originated with Reagan. This all didn't happen within the last 10-15 years. It was very cleverly constructed to take place so gradually, few of us would notice until it all fell apart!

[elleng]

3. Its extremely foolish and naive to believe that these matters

are as simple as this: 'Who was responsible for destroying Glass-Steagall -- Bill Clinton.' Such matters take years and many participants.

http://www.pbs.org/wgbh/pages/frontline/shows/wallstreet/weill/demise.html