Quote:
Originally Posted by Snake Doctor
Now, usually there are laws in place to protect us from turning the nations financial systems into a giant Ponzi scheme...
We need to get past this mindset that regulation is bad and holds the economy down. On the contrary, nobody can prosper when there is no rule of law.  |
Which brings me to the answer to "WHO fucked the economy up?"
The U.S. Government did when they deregulated the derivatives market
Who is to blame for the economy meltdown? Deregulation and Derivatives
http://www.southdacola.com/blog/2008...d-derivatives/
Report from 8/11/2000 -
Deregulation of Derivatives Would Be a Bad Mistake
http://www.econstrat.org/index.php?o...49&Itemi d=46
Derivatives?Financial Voodoo for the Few
In the 1970s the wizards of Wall Street and their advisors introduced a set of financial instruments called derivatives. They were theoretically designed to lower risks for buyers and sellers, including those in recent times involved in Mortgage-Backed Securities (bonds). The primary use of derivatives is called hedging.
In some respects, derivatives were (and are) insurance-like contracts designed to protect, say, bond investors, from default by the bond issuers. The name, derivative, is used because the value of specific instrument is based on (derived from) something else.
The last few years, the complexity and prevalence of derivatives has escalated so that today there are futures, swaps, options, and other exotic hedges available to the wise and un-wise. All together, derivatives have accelerated and deepened the current economic crisis.
Story here:
http://www.sanjuanislander.com/colum...t/part-2.shtml
Related Information
http://www.financialpolicy.org/dsclessons.htm
http://www.financialpolicy.org/dscabmistake1.htm
http://www.democrats.org/page/content/wiki/gramm/
http://www.nytimes.com/2008/11/17/bu...pagewanted=all
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