Larry Summers and the Secret "End-Game" Memo (collapse of the world economy)

[QuestionAlways]

116. They did not gain anything, nor did they lose much unless

you were an employee of one of the banks that failed. Yes, the banks too big to fail got bailed out with no conditions, got even bigger than they were when they were too big to fail and the CEOs continued to get their bonuses. But this was 10 years after the Memo, and a different set of actors were in place, Republicans all.

The rule changes that the Memo was part of may have been a start of the process, but it was just the first step. It was part the the deregulation craze that started with the Carter administration's deregulation of the airlines, and accelerated with the Reagan-Bush administration.

Also the easing of some regulations had a good purpose, but they inadvertently contributed to the crisis. In order to enable more people to afford homes mortgage requirements were relaxed, and people bought homes they really could not afford. When these loans were called in, they contributed to the drop in the value of homes. Another example of unintended consequences.

There were many examples of unintended consequences in the crash of the world economy.