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Obama Lied, the economy died
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<blockquote data-quote="Jones" data-source="post: 565907" data-attributes="member: 4805"><p>Yes, there were sub-prime mortgages, but they were nowhere near as prevalent because they were so high risk. One of the most significant things GLBA did was prohibit the government from regulating credit swaps, which made it easy to to insure sub primes through credit default swaps, which made them essentially no risk for the lending institutions because if the mortgage went into default they got paid anyway (at least until AIG went under in a tidal wave of defaults). The banking committee should have been looking, I agree, but being that they were expressly prohibited from regulating credit swaps by GLBA I'm not sure what they could have done about it.</p></blockquote><p></p>
[QUOTE="Jones, post: 565907, member: 4805"] Yes, there were sub-prime mortgages, but they were nowhere near as prevalent because they were so high risk. One of the most significant things GLBA did was prohibit the government from regulating credit swaps, which made it easy to to insure sub primes through credit default swaps, which made them essentially no risk for the lending institutions because if the mortgage went into default they got paid anyway (at least until AIG went under in a tidal wave of defaults). The banking committee should have been looking, I agree, but being that they were expressly prohibited from regulating credit swaps by GLBA I'm not sure what they could have done about it. [/QUOTE]
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