I thought it was Bush's fault??

[JD8]

I was done told on this here very board recently......that the great recession was Bush's fault.

Well.... here we go again. Democrats are, per usual, good for businesses?

http://www.wsj.com/articles/after-five-years-dodd-frank-is-a-failure-1437342607?mod=e2fb

 

[zseese]

Can you post a copy that's not protected by a paywall?

 

[LightningCrash]

Wonder if I can con anyone into subscribing just to argue about the paper again.

 

[doctorjj]

House Financial Services Committee Chairman Jeb Hensarling writes: Tuesday will mark five years since President Obama’s signing of the Dodd-Frank law, the most sweeping rewrite of the country’s financial laws since the New Deal. Mr. Obama told the country that the bankerlegislation would “lift our economy.” The statute itself declared that it would “end too big to fail” and “promote financial stability.”

“What is most disturbing about Dodd-Frank is the authority it gives bureaucrats to control huge swaths of the economy.”
None of that has come to pass. Too-big-to-fail institutions have not disappeared. Big banks are bigger, small banks are fewer, and the financial system is less stable. Meanwhile, the economy remains in the doldrums.

Dodd-Frank was based on the premise that the financial crisis was the result of deregulation. Yet George Mason University’s Mercatus Center reports that regulatory restrictions on financial services grew every year between 1999-2008. It wasn’t deregulation that caused the crisis, it was dumb regulation.

The law has crushed small banks, restricted access to credit, and planted the seeds of financial instability.
“Oversight? CFPB funding is not subject to congressional appropriations, and Dodd-Frank requires courts to grant the bureau deference regarding its interpretation of federal consumer-financial law.”
Among the dumbest were Washington’s affordable-housing mandates, beginning in 1977, that led to a loosening of underwriting standards and put people into homes they couldn’t afford. The Federal Reserve played its part in the 2008 financial crisis by keeping interest rates too low for too long, inflating the housing bubble. Washington not only failed to prevent the crisis, it led us into it.

“Before Dodd-Frank, 75% of banks offered free checking. Two years after it passed, only 39% did so-a trend various scholars have attributed to Dodd-Frank’s ‘Durbin amendment,’ which imposed price controls on the fee paid by retailers when consumers use a debit card. Bank fees have also increased due to Dodd-Frank, leading to a rise of the unbanked and underbanked among low- and moderate-income Americans.”
Dodd-Frank was supposedly aimed at Wall Street, but it hit Main Street hard. Community financial institutions, which make the bulk of small business loans, are overwhelmed by the law’s complexity. Government figures indicate that the country is losing on average one community bank or credit union a day.

“Because of Dodd-Frank, financial markets will have less capacity to deal with shocks and are more likely to seize up in a panic. Many economists believe this could be the source of the next financial crisis.”
Before Dodd-Frank, 75% of banks offered free checking. Two years after it passed, only 39% did so-a trend various scholars have attributed to Dodd-Frank’s “Durbin amendment,” which imposed price controls on the fee paid by retailers when consumers use a debit card. Bank fees have also increased due to Dodd-Frank, leading to a rise of the unbanked and underbanked among low- and moderate-income Americans.

Has Dodd-Frank nevertheless made the financial system more secure? Many of the threats to financial stability identified in the latest report of Dodd-Frank’s Financial Stability Oversight Council are primarily the result of the law itself, along with other government policies.

“The director of the Consumer Financial Protection Bureau, an agency created by Dodd-Frank, can declare any consumer-credit product ‘unfair’ or ‘abusive’ and outlaw it.”
Dodd-Frank’s Volcker rule banning proprietary trading by banks, and other postcrisis regulatory mandates, has drastically reduced liquidity for making markets in fixed-income assets….(read more)

 

[TerryMiller]

The Democrat apologists here on OSA will soon be here to speculate that the WSJ article was written by Bush and his father, George H.W. Bush, twisted arms at the WSJ to get it published.

 

[ConstitutionCowboy]

Just a quick note: If they say it's too big to fail, it really means it's big enough to take it over.

Woody

 

[Ace_on_the_Turn]

I was done told on this here very board recently......that the great recession was Bush's fault.

Well.... here we go again. Democrats are, per usual, good for businesses?

http://www.wsj.com/articles/after-five-years-dodd-frank-is-a-failure-1437342607?mod=e2fb

It's amusing. So desperate for a gotcha moment you link to an opinion piece (you do know the difference between a factual article and an opinion piece, right?) written by a Republican member of the House that in no way refutes the claim that the recession was Bush's fault. The majority of the article deals with a law passed well after the start of the recession. And I would call attention to this, "The Federal Reserve played its part in the 2008 financial crisis by keeping interest rates too low for too long, inflating the housing bubble. Washington not only failed to prevent the crisis, it led us into it." Now, you have two choices, you can admit that when the writer says, "Washington not only failed to prevent the crisis, it led us into it" the "Washington" in question is the Bush administration. If you don't want to admit that, then pretty much everything that you, and I mean you as in GMThunder, have blamed on the current administration should be, in fact, blamed on "Washington".

Looks like your gotcha moment, just got you.

 

[Defnestor]

Wait, legislation written by bankers and passed by congresscritters (who've received massive donations from bankers) actually lets bankers get even bigger?
Say it isn't so!

 

[dennishoddy]

"The Federal Reserve played its part in the 2008 financial crisis by keeping interest rates too low for too long, inflating the housing bubble. Washington not only failed to prevent the crisis, it led us into it."

I'm only wondering how low mortgage interest rates contributed to anything? I'm not a financial guy, just a person that lives debt free and has for many years.

With perfect credit, my first home was purchased at 18.5% interest rate. With the interest payments running way ahead of the principal payments, one could barely afford to own much more than a hovel when starting out in the civilian job market. By making a double payment, one on the principal and the other on the principle and interest, I got it down pretty quick.
http://www.bankrate.com/finance/mortgages/history-of-mortgage-interest-rates.aspx

With 15 year notes now running in the 2.75% range, how is that a bad thing? How does making housing affordable a bad thing?

It seems to me the bubble was caused by predatory lending practices that put people into homes they couldn't afford. Banks and the Government oversight agencies should have reined that in, but didn't.
If I remember right, they were the actual people causing the whole bubble?

 

[lee1000]

I can't wait until that piece of garbage 0bama is out of office, then it will be all his fault.