From who did Obama "inherit" the economic mess?

[stcroixman]

Originally Posted by Jim in CT

stcroixman, the subprime mortgages contributed nothing?

Those wars started in 2002 and 2003, I believe. The economy did just fine until October 2008, when the subprime mortgages rocked Lehman Brothers and Bear Sterns, and the rest fell like dominoes.

I agree with you 100% that we need some smart regulation of these banks and financial instututions. I also feel that Sarbanes Oxley goes way too far, we spend a lot of time on meaningless compliance with that law.

P.S. I'm a moderare Republican who voted for Clinton and I think he was a pretty good president...

My firm does Sarbanes Oxley work. The word is it is on the chopping block. It is needless BS to the businesses. The best thing that could happen is a flat corporate tax (10% ) like in Ireland, but only for the portion of goods/services made or performed in USA. That will bring back jobs.

I am tired of every politician saying he/she will create 5 million good paying jobs. Exactly how? By giving out tax credits? Cut the tax and cut out the stupid credits.

There are millions out there who would accept 30K($15/hour)- 40K($20/hour) to work in a blue collar job I mean that respectfully too as my day did it for 40+ years, but not everyone is a President or CFO. With the economy hurting, any job is a good job.

[mosholu]

I think the blame for the economic mess we are in goes to both parties. As far back as the Clinton administration Rubin and Summer were pushing for less regulation over the financial markets. Under then HUD Secretary Cuomo the regulations regarding qualifying mortgages for Fannie and Freddie and the FHA were greatly relaxed to included sub-prime and other things which we now regret. The Republicans were no better. Phil Gramm pushed through regulations exempting the electronic trading of off exchange energy derivatives form the review of the CFTC. Even after Enron these transactions were not subject to reporting or review. Under Bush, the light or no touch continued at the SEC and other regulatory agencies. The investment banks were able to lobby the SEC to have credit default swaps deemed not to be insurance and removing any review from state insurance administrators. Unregulated credit default swaps are what brought AIG down.
Bottom line: Wall Street has both parties in their back pocket and we as an electorate need to curb their power. I am all for capitalism and innovation but time and time again we have found that left to their own devices greedy participants will hurt the economy and the average taxpayer gets the bill.