The history of democratic failure

Just for the record, the Fair Housing Act was signed by Lyndon Johnson in the late 1960s.

And, more interestingly, the history of derivatives dates to much earlier times than most people realize. LSU finance professor Don Chance has done some interesting work in this area.

http://husky1.stmarys.ca/~gye/derivativeshistory.pdf

Of course, various mathematicians developed derivative evaluation and trading models over the last few decades, some of which contributed grievously to the financial meltdown of 2008. Originally Posted by CaptainMidnight

Do you mean Johnson did something ? Actually Clinton did more to loosen up the banking regs and pushed them to make questionable loans.. Derivatives were not a big item until the morgage industry started bundling their bad or iffy paper and reselling them... Im not letting Republicans off the hook here , they were just as involved, but is was Clinton's policy's that eventually led to the meltdown.....

Do you mean Johnson did something ? Actually Clinton did more to loosen up the banking regs and pushed them to make questionable loans.. Derivatives were not a big item until the morgage industry started bundling their bad or iffy paper and reselling them... Im not letting Republicans off the hook here , they were just as involved, but is was Clinton's policy's that eventually led to the meltdown..... Originally Posted by steamyromance

All I did was note that the Fair Housing Act dates to the 1960s, which is true.

Yes, the Clinton Administration loosened financial regulations in a variety of ways, and so did Republicans. Remember the Gramm-Leach-Bliley Act, just for one? The failure was extensively and manifestly bipartisan.

And I think the history of derivatives is interesting. A physicist didn't just "come up with them" in recent years.

It's important to note that they play a useful role in finance, and have done so for a very long time. Of course, when misused in a highly leveraged financial system devoid of effective regulation and supercharged by ultra-accommodative monetary policy, they can create violently destructive blowups.

That's why Warren Buffett referred to them as "financial weapons of mass destruction" on a few occasions over the last decade.

The Fair Housing Act by LBJ set the table, the Community Reinvestment Act of 1977 was the meal, and what Bill Clinton (bullying the banks into compliance) did was the garnish. Say what you will but Bush and McCain tried to spearhead efforts to audit Fannie and Freddie in 2005 but were stopped by the leading democrats in Congress. Don't know if knowing the facts in 2005 would have stopped the 2008 meltdown but we might have been warned.

The Fair Housing Act by LBJ set the table, the Community Reinvestment Act of 1977 was the meal, and what Bill Clinton (bullying the banks into compliance) did was the garnish. Say what you will but Bush and McCain tried to spearhead efforts to audit Fannie and Freddie in 2005 but were stopped by the leading democrats in Congress. Don't know if knowing the facts in 2005 would have stopped the 2008 meltdown but we might have been warned. Originally Posted by JD Barleycorn

Sheesh, righties, including Jeb Bush most recently, bitch and moan that Obama is blaming GWB and they are sick and tired of it 'cuase it is so long ago, but then they go and tie the epic GWB failure to regulate, to Clinton, Carter and LBJ for Christ's sake - decades before! Yeah, sure, two acts passed by Dems (to eliminate red-lining BTW) didn't lead to a crash for 12 years of Republican presidents, then Republicans pass GLBA which doesn't cause problems for two years until GBW gets in and fails to enforce pretty much any financial regulations so in the 7th year of his presidency comes close to bringing everything down. That sure makes it an epic Dem failure. It is obviously all LBJ, Carter and Clinton's fault and Obama shouldn't blame the president that it happened under, but those who passed laws 10, 30 and 45 years before (and had no big problems until GBW got in). Makes perfect sense..... in bizarro world.

Sheesh, righties, including Jeb Bush most recently, bitch and moan that Obama is blaming GWB and they are sick and tired of it 'cuase it is so long ago, but then they go and tie the epic GWB failure to regulate, to Clinton, Carter and LBJ for Christ's sake - decades before! Yeah, sure, two acts passed by Dems (to eliminate red-lining BTW) didn't lead to a crash for 12 years of Republican presidents, then Republicans pass GLBA which doesn't cause problems for two years until GBW gets in and fails to enforce pretty much any financial regulations so in the 7th year of his presidency comes close to bringing everything down. That sure makes it an epic Dem failure. It is obviously all LBJ, Carter and Clinton's fault and Obama shouldn't blame the president that it happened under, but those who passed laws 10, 30 and 45 years before (and had no big problems until GBW got in). Makes perfect sense..... in bizarro world. Originally Posted by austxjr

touche'

Bush-it's Regan's fault
Clinton it's Bushes fault
Bush-it is Clinton's fault
Obama-it's Bush's fault
Romney-it's Obama's fault.

Bush-it's Regan's fault
Clinton it's Bushes fault
Bush-it is Clinton's fault
Obama-it's Bush's fault
Romney-it's Obama's fault. Originally Posted by ekim008

Yssup-It's YOUR fault wingnuts!

When Social Security fails, and it will, will you blame the current president or the person who put together a flawed program in 1934? Or will you blame the man who raided the money and left social security heading for insolvency, LBJ? Sometimes you have to go backwards to find the guilty party.

Both parties have been raiding it to balance their budget.If they had kept their hands off it would have provided the retirement help some people need.Money and politicians is like a fox and chickens.