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McCain Admits Republican Failure

September 15, 2008

Promises, promises.

Promises, promises.

“I promise you we will never put America in this position again,” McCain said. “This is a failure.”

Do you think America would survive another debacle like the Bush Administration?

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One Comment leave one →
  1. bob permalink
    September 16, 2008 1:36 pm

    Who put us in this historic failure? Read and Learn.

    John McCain Addresses the Orange County Hispanic Small Business Roundtable
    March 25, 2008
    A Between 2001 and 2006, housing prices rose by nearly 15 percent every year. The normal market forces of people buying and selling their homes were overwhelmed by rampant speculation.
    Our system of market checks and balances did not correct this until the bubble burst
    Full Story: http://www.johnmccain.com/Informing/News/Speeches/bea72b48-35ba-48cb-8cea-b3b68b9be7ee.htm

    The Subprime Mess and Phil Gramm: An Experiment in Deregulation June 24, 08
    Paul Kiesel, Attorney

    In 1933, a few years following the stock market crash, Congress passes the Glass-Steagall Act, in hopes that regulating banks will help prevent market instability, particularly amongst Wall Street banks. The purpose of the act is to separate commercial banks that focus on consumers from investment banks, which deal with speculative trading and mergers.

    The Glass-Steagall Act provided the proper oversight and entity separation that would prohibit banks and other financial companies from merging into giant trusts (conflict of interests) — giant trusts or corporations being more powerful, naturally, and having the seemingly limitless capital to lobby their corporate interests, however, with a very myopic scope (particularly when it comes to factoring in potential losses — most banks, as seen in contemporary times, chose not to anticipate losses in the mortgage market; they presumed home prices would continue to appreciate).

    In 1999, former Senator Phil Gramm (who is, incidentally, Senator John McCain’s economic adviser and cochairs his presidential campaign) set out to completely gut the Glass-Steagall Act, and did so successfully, replacing most of its components with the new Gramm-Leach-Bliley Act: allowing commercial banks, investment banks, and insurers to merge (which would have violated antitrust laws under Glass-Steagall). Sen. Gramm was the driving force behind the Gramm-Leach-Bliley Act, as he had received over $4.6 million from the FIRE sector (Finance, Insurance and Real Estate donations) over the previous decade, and once the Act passed, an influx of ‘megamergers’ took place among banks and insurance and securities companies, as if they had been eagerly awaiting the passage of Gramm’s Act. Everything in between Glass-Steagall and Gramm-Leach-Bliley (i.e. Savings and Loan crisis/bust) was, in large part, the incubation period for what would take place over the nine years that would follow the passage of Gramm’s Act: an experiment in deregulation.

    Full Story: http://losangeles.injuryboard.com/miscellaneous/the-subprime-mess-and-phil-gramm-an-experiment-in-deregulation.aspx?googleid=242468

    http://banking.senate.gov/conf/

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