Monday, March 17, 2008

A simple explanation of why you'll soon be able to buy your own Wall St. investment bank

Jonathan Golob over at the Slog has put together a great stick-figure primer to explain the sub-prime mortgage crisis, why it's now melting down world financial markets and why more investment banks are headed for the ignoble fate of Bear Stearns.

Golob also makes the argument this crisis is as least partly the Clinton administration's fault for its support of late 90's deregulation of the banking industry:
As pleasant as it would be to lay the current financial crisis entirely at Bush’s feet, a significant amount of the blame should go to Rubin and Clinton. Signing the (now clearly disastrous) Gramm-Leach-Bliley Act in November of 1999—dismantling most of the Depression-era protections—was a classic bit of Clintonian triangularization, a gigantic sop to Wall street firms at the expense of Bill’s base of liberal and working class supporters. What could they do? Who could the people hurt by this act vote for? Nader? Let the checks from the financial services industry roll in!

Some might call this experience that matters.

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