Damn, pt 2

I posted about deregulation here. I guess I was right. Phil Gramm coauthored a bill that allowed Investment Banks to do things that they had not been allowed to do since the Depression. Phil Gramm then left the Senate, and started working for UBS's US Division. Phil created a job for himself, and then turned around and said this recesion was all mental and tat Americans were whiners.

Hey Phil, can you say Chickens coming home to roost? Phil gutted the laws that protected us, the Fed did nothing to tighten oversight, and the Banks ran wild. Sub-prime lenders were funded by large banks- that's a fact that many ignored. The Sub-primes were proxies for big banks- sucking cash out of people that the big banks wouldn't touch. Then the big banks bought those overpriced loans. Now, you have to be kind of dumb to accept an interest-only loan. As the name implies, you are only paying the interest every month, which means you have no equity in your home. The only way of getting equity is for the value of the house to rise. To me, that is real estate speculation.