And you are failing to understand the entirety of what happened and why. Further you are refusing to take the opportunity to educate yourself by reading the references I've provided.
Exactly. "Mark to market" was also reformed by the SEC and FASB in 2009 after the damage had been done. The reforms were made after a scathing Congressional hearing in March 2009 but the reforms were not retroactive to restore the ~ $500B in financial capital which "mark to market" had senselessly destroyed.
I watched the video. Frank was a member of the House, not the Senate. Bush had the power under existing legislation to take action through the DoJ and SEC. He certainly could have ended a lot of the marketing of garbage commercial paper by using the bully pulpit to expose the situation. Bush also let Lehman go broke and that created a banking crisis as banks stopped lending to each other. The only way we save the banking system was by guaranteeing inter-bank lending. BTW, I'm not a Democrat and have never voted for a Democrat in my life. None. Zero.
Doesn't it bother you in the least to know that some of the people who were following the discussion on the forum are no convinced you're a lot of hot air?
Yes, and they got through Sarbanes/Oxley which did nothing to stop the problem and the economy crashed anyway, thanks Democrats.
Oh, please. You couldn't discuss the efficacy of market-to-market vs. mark-to-management if you tried, nor could you explain why Bush couldn't have bailed out Lehman that was holding a lot of commercial paper. You duck, bob, and weave because you're in over your head.
Did you really think the economy was going go anywhere but down when we had this in 2006? How do you think things look now? So, who do you blame for home prices going nuts? If a home cost $400,000 in 2000, it should be about $588,000 today. The index above suggests it's more than $1,000,000. http://www.in2013dollars.com/2000-dollars-in-2018?amount=1 Do you have any idea what's wrong? Do you know how to fix the problem? If the house costs $1,000,000 with $200,000 down, the monthly payment is $5,627.91 per month. If it cost $588,000 with $200,000 down, the payment is $2,866.87 month. https://usmortgagecalculator.org/ Why are prices getting so high again?
I could care less what you think of me or my posts. I’ve provided a summary post (multiple times) and a list of ~ 20 books which are references for that post.
Read my post again and my references concentrating on the first six. Bill Isaac (former head of the FDIC) does a particularly nice job of explaining how “mark to market” damaged the banking system.
The housing price escalation was primarily in coastal California and Florida. This was the result of lack of supply and low interest rates. The housing bubble and financial crisis are two different things. Read Dr. Sowell’s book from my list and educate yourself.
And you could understand the root causes of the housing bubble and financial crisis with the references I’ve provided.
I see--you don't know why prices are higher today than they were in 2006. I rather doubt, too, you understand where it all may be headed. I sure hope you're not advising people about the housing market.
I'm sorry but your wrong. Many companies have switched from a regular defined pension to a 401-K. Cities and states are trying to do it as these defined pensions are going broke.
Only about 1/3 of workers have a 401(k). Half of American have $10,000 or less saved for retirement. As I said, most Americans own few shares of anything.
Guess what? 1/3 of all the workers in America is millions of people and that number is growing every year as companies and cities dump their defined pensions.
