On Mon, 15 Sep 2008 21:56:41 -0400, "Tom Gardner"
wrote:

You need to think a little harder then jimbo.
was before Clinton and when Ronnie allowed mortgage backed securities
he kicked of this nightmare.

Okay, assuming this is right, why didn't Billy Clinton do anything to fix
it? I think he
had control of things up to 1994.
------------
I think you just explained the real reason for the impeachment
drive, the BJ being the excuse.

From somewhat patchy evidence this was exactly what he was
attempting to do, which is unusual as he comes from a
historically corrupt political background [Arkansas] so things
must have been really rank. Still, even a crook doesn't want
their town burned down as then there would be nothing to steal.

His major mistake was in forgetting just who he was dealing with,
and take precautions accordingly. It is well to remember that
this is the same group that made the mob "an offer they couldn't
refuse" for Las Vagus (which they gratefully and humbly
accepted).

FWIW -- the first obvious breach of the protections enacted as
result of the 1929 financial implosion was the repeal of
regulation Q by the Depository Institutions Deregulation and
Monetary Control Act of ==1980,== which allowed the FDIC to set
the permissible interest rates for demand deposits [hot money]
and checking accounts [0%]. This allowed the "high roller" banks
to offer high deposit rates leading to speculation with the money
and the classical trap where they lent long [30 year mortgages]
with short term money [hot/brokered demand deposits]. As soon as
other investment opportunities offered better returns [such as
another bank with higher interest rates] the hot money was
pulled, and the banks collapsed.
http://en.wikipedia.org/wiki/Glass-Steagall_Act
http://en.wikipedia.org/wiki/Regulation_Q

A key term is "disintermediation" where individuals invest their
money directly rather than through established organizations such
as banks and insurance companies which both pool the individual
funds and assume responsibility, in addition to having a greater
understanding of the risks, but charge a [implicit] fee resulting
in a [slightly] lower return.
http://en.wikipedia.org/wiki/Disintermediation
http://www.utdallas.edu/~chaf/ba4345/trans/ch11.ppt
if of interest google on "financial disintermediation" for
about 5k hits.


Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?

Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).