Quote:
Originally Posted by spence
Unreasonable.
You're ignoring the single largest factor in the 1990's economic growth which was investment driven not by low taxes but by the Internet bubble and low oil prices.
Coming off of this, a rise in foreign wealth looking for better returns the derivatives market. The money needed a home so the finance wonks built one.
People can #^&#^&#^&#^&er all they want about which ideology contributed more to the infrastructure for the credit bubble, but the reality is that bigger trends shaped this mess.
-spence
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"Coming off of this, a rise in foreign wealth looking for better returns the derivatives market. The money needed a home so the finance wonks built one."
Oh Spence? You are forgetting that the derivitives market was once sufficiently regulated to prevent what happened with subprime mortgages. The repeal of that regulation was signed by that right-wing nut Bill Clinton. If that regulation had been left in place, the subprime mortgage bust would not have been nearly so bad.
A republican congress wrote that bill, Clinton signed it. That's why I say plenty of blame for both sides. I doubt you'd ever say anything so fair. Or astute, for that matter.
You also seem to be ignoring the effect of the subprime mortgages themselves. You choose to ignore this, because you know it makes your side look stupid. If banks were allowed to enforce underwriting standards, none of this would have happened.