Wall Street Pushes For More Deregulation And Another Housing Bubble

http://www.politicususa.com/en/wall-street-deregulation

The conservative whipping boy of the 2008 was Fannie Mae and Freddie Mac.** The GOP did everything in their power to steer focus away from the deregulation of Wall Street banks. They blamed people taking on more risk than they could afford. They didn’t blame the banks for providing the mechanisms to attract people into the market in the first place. Mechanisms like no doc loans, adjustable rate mortgages and no down payment loans were created by the Wall Street banks in order to increase customers into the housing market.

(** Fannie Mae and Freddie Mac are publicly traded companies on Wall Street)

Deregulation made this obtainable and possible. In a free market, banks should be allowed to offer what ever they want in order to attract consumption. The free market also allows mergers and acquisitions, thus creating TOO BIG TO FAIL.

If progressive policies were in place, all these financial mechanisms would be illegal. In fact, if progressive regulations were in place, too big too fail banks would also be illegal making this collapse of 2008 not even part of our history. There was a reason why there weren’t any bank bailouts from the 1940s to 1980s, it was progressive policies that were put in place by FDR and upheld by every administration until Reagan.

More at the link --

Yeah right, the government forced them to make the most front loaded profitable loans in history, and then lie about the risk factor of these loans.