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2016 Postmortem
In reply to the discussion: PSA: How many people here who love to hate "Wall Street" actually know what it means? [View all]RiverLover
(7,830 posts)44. Um, no.
.......The following year, Congress passed and President Clinton signed the Commodity Futures Modernization Act, which effectively shielded OTC derivatives from virtually all regulation or oversight and marked a key turning point in the march toward the financial crisis, according to a 2011 report by the Financial Crisis Inquiry Commission. (Born served as a Commission member.)
The OTC derivatives market expanded greatly after the bill was enacted, as detailed in the Financial Crisis Inquiry Commission report. At year-end 2000, when the [Commodity Futures Modernization Act] was passed, the notional amount of OTC derivatives outstanding globally was $95.2 trillion, the report said. In the seven and a half years from then until June 2008, when the market peaked, outstanding OTC derivatives increased more than sevenfold to a notional amount of $672.6 trillion.
At the height of the financial crisis, the government approved a massive taxpayer bailout of insurance giant AIG, which had a $79 billion derivatives exposure to mortgage-related financial products that were tanking in value.......
http://www.pogo.org/blog/2014/04/how-the-clinton-team-thwarted-effort-deregulate-derivatives.html
The OTC derivatives market expanded greatly after the bill was enacted, as detailed in the Financial Crisis Inquiry Commission report. At year-end 2000, when the [Commodity Futures Modernization Act] was passed, the notional amount of OTC derivatives outstanding globally was $95.2 trillion, the report said. In the seven and a half years from then until June 2008, when the market peaked, outstanding OTC derivatives increased more than sevenfold to a notional amount of $672.6 trillion.
At the height of the financial crisis, the government approved a massive taxpayer bailout of insurance giant AIG, which had a $79 billion derivatives exposure to mortgage-related financial products that were tanking in value.......
http://www.pogo.org/blog/2014/04/how-the-clinton-team-thwarted-effort-deregulate-derivatives.html
This screw-up with deregulating derivatives is so obvious, even Bill had to admit it was a major mistake~
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PSA: How many people here who love to hate "Wall Street" actually know what it means? [View all]
hill2016
Nov 2015
OP
Yeah,it's a street in Manhattan that symbolizes wealth and greed. It's just a street.
virgogal
Nov 2015
#1
The best answer is here. It's not a simple "fraud" model. It's how the capitalistic world works
Sancho
Nov 2015
#19
Sanders voted for Commodities Futures Modernization Act of 2000, it aided in the finanical crisis.
Thinkingabout
Nov 2015
#60
Yes, please lecture us about how we don't know what we're talking about - that will win us over.
reformist2
Nov 2015
#15
Banks use our deposits to gamble with & we bail them out if they lose at the table.
RiverLover
Nov 2015
#16
Michael Lewis has written many good books on it. I suggest the OP read some of them.
Electric Monk
Nov 2015
#52
Are you supporting Clinton? Are you sure? have you checked? Check again. Are you still sure?
Scootaloo
Nov 2015
#55