Do you know why WJC signed it into law? I recall someone asked him recently if he was sorry Gramm convinced him to sign it; but can’t remember what he answered…(so you?).

Thanks!

Okay, let’s agree he inherited a mess (and that no one “beg him” to be POTUS BTW). Then:

We can’t blame President Obama for the mess he inherited. But we can definitely blame him for making it worse. Stocks are off 28.4% since his election, 15.2% since his inauguration, and 17.2% since his so-called “stimulus” bill was enacted. To say the very least, whatever he’s doing, it ain’t working.

http://www.smartmoney.com/Investing/Economy/Even-Worse-Than-the-Great-Depression/

So, lute: Yes we can blame the current funk of the markets on him. Obama is acting in an utterly irresponsible and incompetent manner. This says it best:

It is curious indeed to have a single crisis this enormous, one which was in large part responsible for the candidate’s victory, and have such a lackadaisical attitude toward solving it. You would think every policy move, every “summit,” and the budget itself – which is a blueprint for the administration’s agenda – would focus on that singular mission: economic recovery. The fact that the administration is running off in a dozen different directions suggests they have either not the inclination or the know-how to address the most critical issue of our time.

No wonder the markets are in a funk.

http://www.commentarymagazine.com/blogs/index.php/rubin/57802

The Gramm-Leach-Bliley also made sub-prime lendors a possibilty and allowedortgage companies to open shop and buy and sell mortgages without assets to back them up.

This is very telling:

BUFFETT: Well, I was going to mention to Joe that you’ve heard this comment recently from some Democrats recently that a `crisis is a terrible thing to waste.’

BECKY: Yeah.

BUFFETT: Now, just rephrase that and since it’s, in my view, it’s an economic war, and–I don’t think anybody on December 7th would have said a `war is a terrible thing to waste, and therefore we’re going to try and ram through a whole bunch of things and–but we expect to–expect the other party to unite behind us on the–on the big problem.’ It’s just a mistake, I think, when you’ve got one overriding objective, to try and muddle it up with a bunch of other things.

Republican deregulation play a big role in this meltdown.

The republican authored Gramm-Leach-Bliley Financial Services Modernization Act , got rid of the Glass-Steagall Banking Act of 1933. The act separated investment and commercial banking activities to guard against banks taking undue risk with investors money.

It also got rid of the Bank Holding Company Act of 1956.
http://en.wikipedia.org/...

“The Bank Holding Company Act of 1956 (12 U.S.C. § 1841, et seq.) is a United States Act of Congress that regulates the actions of bank holding companies.

“The original law (subsequently amended), specified that the Federal Reserve Board of Governors must approve the establishment of a bank holding company, and prohibited bank holding companies headquartered in one state from acquiring a bank in another state. The law was implemented in part to regulate and control banks that had formed bank holding companies in order to own both banking and non-banking businesses. The law generally prohibited a bank holding company from engaging in most non-banking activities or acquiring voting securities of certain companies that are not banks.

The interstate restrictions of the Bank Holding Company act were repealed by the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA). The IBBEA allowed interstate mergers between “adequately capitalized and managed banks, subject to concentration limits, state laws and Community Reinvestment Act (CRA) evaluations.” Other restrictions which prohibited bank holding companies from owning non-financial institutions were repealed in 1999 by Gramm-Leach-Bliley Act. In the United States, financial holding companies continue to be prohibited from owning non-financial corporations in contrast to Japan and continental Europe where this arrangement is common.”

http://en.wikipedia.org/...

This Gramm-Leach-Bliley Act was written by 3 republicans, Phil Gramm (R-Texas) and in the U.S. House of Representatives by Jim Leach (R-Iowa). The third lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr. (R-Virginia), Chairman of the House Commerce Committee from 1995 to 2001.

also
“the appointment of free-market disciple Wendy Gramm, wife of U.S. Sen. Phil Gramm , R-Tex., as chairperson, would result in her successful 1989 and 1993 exemption of swaps and derivatives from all regulation.”

“On May 6, 1999, the Senate passed the bills by a 54-44 vote along party lines (53 Republicans and one Democrat in favor; 44 Democrats opposed).[2] On July 20, the House passed a different version of the bill on an uncontested and uncounted voice vote. When the two chambers could not agree on a joint version of the bill, the House voted on July 30 by a vote of 241-132 (R 58-131; D 182-1) to instruct its negotiators to work for a law which ensured that consumers enjoyed medical and financial privacy as well as “robust competition and equal and non-discriminatory access to financial services and economic opportunities in their communities” (i.e., protection against exclusionary redlining) [3] [4] The bill then moved to a joint conference committee to work out the differences between the Senate and House versions. Democrats agreed to support the bill after Republicans agreed to strengthen provisions of the anti-redlining Community Reinvestment Act and address certain privacy concerns; the conference committee then finished its work by the beginning of November.[3] [5] On November 4, the final bill resolving the differences was passed by the Senate 90-8 [6] and by the House 362-57.[7] This legislation was signed into law by Democratic President Bill Clinton on November 12, 1999.[8]“

The republican authored Gramm-Leach-Bliley Financial Services Modernization Act , got rid of the Glass-Steagall Banking Act of 1933. The act separated investment and commercial banking activities to guard against banks taking undue risk with investors money.

It also got rid of the Bank Holding Company Act of 1956.
http://en.wikipedia.org/...

“The Bank Holding Company Act of 1956 (12 U.S.C. § 1841, et seq.) is a United States Act of Congress that regulates the actions of bank holding companies.

“The original law (subsequently amended), specified that the Federal Reserve Board of Governors must approve the establishment of a bank holding company, and prohibited bank holding companies headquartered in one state from acquiring a bank in another state. The law was implemented in part to regulate and control banks that had formed bank holding companies in order to own both banking and non-banking businesses. The law generally prohibited a bank holding company from engaging in most non-banking activities or acquiring voting securities of certain companies that are not banks.

The interstate restrictions of the Bank Holding Company act were repealed by the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA). The IBBEA allowed interstate mergers between “adequately capitalized and managed banks, subject to concentration limits, state laws and Community Reinvestment Act (CRA) evaluations.” Other restrictions which prohibited bank holding companies from owning non-financial institutions were repealed in 1999 by Gramm-Leach-Bliley Act. In the United States, financial holding companies continue to be prohibited from owning non-financial corporations in contrast to Japan and continental Europe where this arrangement is common.”

http://en.wikipedia.org/...

This Gramm-Leach-Bliley Act was written by 3 republicans, Phil Gramm (R-Texas) and in the U.S. House of Representatives by Jim Leach (R-Iowa). The third lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr. (R-Virginia), Chairman of the House Commerce Committee from 1995 to 2001.

also
“the appointment of free-market disciple Wendy Gramm, wife of U.S. Sen. Phil Gramm , R-Tex., as chairperson, would result in her successful 1989 and 1993 exemption of swaps and derivatives from all regulation.”

“On May 6, 1999, the Senate passed the bills by a 54-44 vote along party lines (53 Republicans and one Democrat in favor; 44 Democrats opposed).[2] On July 20, the House passed a different version of the bill on an uncontested and uncounted voice vote. When the two chambers could not agree on a joint version of the bill, the House voted on July 30 by a vote of 241-132 (R 58-131; D 182-1) to instruct its negotiators to work for a law which ensured that consumers enjoyed medical and financial privacy as well as “robust competition and equal and non-discriminatory access to financial services and economic opportunities in their communities” (i.e., protection against exclusionary redlining) [3] [4] The bill then moved to a joint conference committee to work out the differences between the Senate and House versions. Democrats agreed to support the bill after Republicans agreed to strengthen provisions of the anti-redlining Community Reinvestment Act and address certain privacy concerns; the conference committee then finished its work by the beginning of November.[3] [5] On November 4, the final bill resolving the differences was passed by the Senate 90-8 [6] and by the House 362-57.[7] This legislation was signed into law by Democratic President Bill Clinton on November 12, 1999.[8]”

So as much as the republicans like to rail about Barney Frank and Bill Clinton being responsible for the current mortgage meltdown, it was a republican authored bill, passed unanimousely by both house of a republican controlled congress, in the final year of Bill Clinton’s Presidency that created the tools that forged this mess. It made sub-prime lendors a possibilty and allow mortgage companies to open shop and buy and sell mortgages without assets to back them up.

As far as Bill CLinton Cinton dropping lending standards and giving away mortgages to low income people, this for the most part happend under Bush’s watch courtesy of that Gramm-Leach-Bliley Act of 1999.

Gonna keep it in the White House…