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Anatomy of the Mortgage Crisis July 7, 2008

Posted by truthspew in Uncategorized.
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Or perhaps I should have called that economic collapse, because that is precisely what is happening these days.

Got this link to a Mother Jones timeline dating back to 1913 and moving forward to 2008.

Particular points of interest are 1913, 1933, and 1970. First was formation of the Federal Reserve system. A promise of that system was to eliminate the financial panics that supposedly plagued the U.S. prior to the existence of the Fed. However we suffered our worst economic depression under its watch starting in the late 20’s.

Next up is 1933 when legislators tried to reign in the banks, only to have that effort overturned in 1970.

The next special year is 1978 when most banks went national, meaning state regulatory law didn’t cover the banks any longer.

But the granddaddy of them all is December 14, 2000. That is when they snuck the Enron amendment into the omnibus appropriations bill. That allowed commodities like energy, including oil and it’s derivative electricity to be traded outside the bounds of the Securities and Exchange Commissions watch. This gave us the rolling blackouts in California and much more. The reason we now pay $4 and more for a gallon of fuel and our electric prices are going bonkers is because those energy futures are traded outside SEC rules, by order of that appropriations bill.

That little gift came to us in the arms of Sen. Phil Gramm (R Texas) who btw, is deep in the pocket of lobbyists. He’s the same Gramm that left in 2002 to work for UBS. Interesting isn’t it?

Our elected representatives are no longer serving our best interests. The best part of it is that most of those responsible for the financial mess we’re in now are Republicans.

In essence this has been the looting of the American public. But here’s the rub, you can only wring a stone so far to get blood. Once we’re tapped out the businesses who backed the Republicans will suffer too but by then they’ll have won, they’ll have all the money. But that won’t last forever. Eventually they’ll need us peasants again.

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