Economists Blame Phil Gramm For Current Crisis

Economic experts say that Gramm and others are to blame for the current crisis that is shaking Wall Street.

Gramm's successful effort to pass banking reform laws in 1999, which reduced decades-old regulations separating banking, insurance and brokerage activities, helped to create the current economic crisis.

"As a result, the culture of investment banks was conveyed to commercial banks and everyone got involved in the high-risk gambling mentality. That mentality was core to the problem that we're facing now," Stiglitz says.

Lakshman Achuthan, managing director of the Economic Cycle Research Institute, also asserted that Gramm was mistaken, criticizing him and economic policymakers for not taking the risk of recession seriously enough.

"There is a recession -- that is clear and it doesn't make sense to blame middle-class folks," says Achuthan. "Policy holders should be held fully accountable for letting Wall Street run amok."

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[VinceP1974]

What political hacks never mention about Gramm's 1999 bill is that the Democrats added a provision that any bank entering into the new markets MUST comply with all Community Reinvestment Act requirements and must first have undergone a satisfactory audit of their compliance.

This guaranteed that every bank entering into the international trading system would infect it with time bomb bad loans.

Anyone who neglects to mention this is a liar or ignorant.

[ThePatriotsMaxims]

And what you did not mention is that the CRA applies only to banks, and the vast majority of home loans are made by mortgage companies not under their jurisdiction.

I guess that makes you either a liar, or ignorant.

[Plutonwolf]

Hubris. They think they are smarter. They think they can walk on fiscal water. They also think they can manipulate the system to be the financial eye of the chaos storm they create, cherry picking deals from the swirling maelstrom they have wrought.

Never forget, you are dealing with true sociopaths here, normal human values and conceptions of decency do not apply to them, in another time and era, they would have a parrot on their shoulder a patch on 1 eye, a peg leg and a cutlass arr matey

[greenwalk7313]

Too bad these idiots didn't pay attention to what happened in 1929. They gambled with our economy and lossed.

[bucky468]

Whoever assassinates Gramm is my hero.

[TheMercilessEye]

You know......things have taken a rather bad turn in your absence.

We could use your help, out here, again...

---TME

[mediblue9]

Dude, i still have friends that say the crash of 29 happened on FDR's watch.

[mediblue9]

Regardless, it was Gramm's bill. And it was Wendy Gramm's-you know, president Reagans favorite economist- persistant behavior that led to The Commodity Futures Modernization Act of 2000.  I'm glad one provision was sponsored by the democrat. It's a major fail for the Republicans, voting Democrats and Bill Clinton--and for the finance industry.

[packetscan]

It's all the democrats fault.

Where did that wolf go.........

[RAMKING61]

I was beginning to think that CNN would ignore Gramm FOREVER! Watch my videos for more truth.

[ecktoeman]

Nice try but wingnuts like Ms. VinceP1974 don't care about facts or specific details. They will ALWAYS see themselves as the poor victims of the evil American Government. And please don't point out that the Rush Limbaugh party has controlled at least one branch since Reagan, under BushII - ALL the branches of gov't, yet sill, they're just the pathetic victims even though they were in power. . .

REPUBLICANS = FILTHY UN-AMERICAN SCUM

[Lane4411]

Gramm is and academic with no pratical experience - much like GINGRICH, ARMEY, WOLFOWITZ, FEITH, ETC!!!

In 1973 Gramm invested in three soft-core pornographic films promoted by his brother-in-law, George Caton. Only the third, "White House Madness" - a soft-core pornographic political satire set in the White House during the Nixon administration - was actually produced. The film flopped and Gramm lost his $7,500 investment. Gramm is not given production credit on the film's IMDB page.