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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (540385)	1/4/2010 4:20:23 PM
From: TimF	Read Replies (2) \| Respond to of 1576346

The tax cuts and lack of the enforcement of gov't regs is what lead to the fiancial crisis. Nonsense. Tax cuts had nothing to do with it, the idea that slightly lower taxes in the US would lead to a world wide financial crisis and recession is ridiculous. As for lack of enforcement, there was no great downturn in enforcement. Certain relatively new types of activity didn't have new regulations extended to them, but that's not deregulation, or lack of enforcement in regulation, and it also wasn't the main way issues of regulation contributed to the problem. Regulations, combined with political pressure and threats, and lawsuits contributed to unsafe lending, and to lenders not holding the loans themselves but passing them off to be securitized. The government gave favorable treatment to such loans in terms of reserve requirements over loans that where not cut up and recombined in to complex securities.