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You may be surprised at how similar the 1997 Asian Financial Crisis is to the 2008 U.S. Financial Crisis.
Here we are 10 years later, experiencing a VERY SIMILAR crisis to the one which occured in Asia back in 1997. You would think our present government would have learned from the Asian crisis!
However ....
Those who don't learn from history are doomed to repeat it ....
Below are quotes from several good articles on the 1997 Asian Crisis:
The crisis unfolded against the backdrop of several decades of outstanding economic performance in Asia, and the difficulties that the East Asian countries face are not primarily the result of macroeconomic imbalances. Rather, they stemmed from weaknesses in financial systems and, to a lesser extent, governance. A combination of inadequate financial sector supervision, poor assessment and management of financial risk, and the maintenance of relatively fixed exchange rates led banks and corporations to borrow large amounts of international capital, much of it short-term, denominated in foreign currency, and unhedged. As time went on, this inflow of foreign capital tended to be used to finance poorer-quality investments.
Many economists believe that the Asian crisis was created not by market psychology or technology, but by policies that distorted incentives within the lender-borrower relationship. The resulting large quantities of credit that became available generated a highly-leveraged economic climate, and pushed up asset prices to an unsustainable level.[9] These asset prices eventually began to collapse, causing individuals and companies to default on debt obligations. The resulting panic among lenders led to a large withdrawal of credit from the crisis countries, causing a credit crunch and further bankruptcies.
Heeding the Lessons of the 1997 Asian Financial Crisis as Wall Street Bleeds | Opinion Asia (http://www.opinionasia.org/HeedingtheLessonsofthe97Crisis - broken link)
Quote:
Today Asia could well remind America of the lessons it painfully learned through the 1997 financial crisis. Asia could remind America of the policies it had lectured the region’s governments on after 1997 -- of the importance of good corporate governance and regulatory oversight.
Republicans are always against government regulations. Even when that is EXACTLY WHAT WAS NEEDED to avoid a FINANCIAL CRISIS like we are presently experiencing in the U.S.
Republicans allow both businesses and financial institutions to regulate themselves, so they will make big contributions to their election campaigns.
Then when these corporations fail due to lack of regulatory oversight ... Republicans come to the taxpayers to bail out the corporations ... like we are currently doing for the banking industry.
You may be surprised at how similar the 1997 Asian Financial Crisis is to the 2008 U.S. Financial Crisis.
Here we are 10 years later, experiencing a VERY SIMILAR crisis to the one which occured in Asia back in 1997. You would think our present government would have learned from the Asian crisis!
However ....
Those who don't learn from history are doomed to repeat it ....
Below are quotes from several good articles on the 1997 Asian Crisis:
Heeding the Lessons of the 1997 Asian Financial Crisis as Wall Street Bleeds | Opinion Asia (http://www.opinionasia.org/HeedingtheLessonsofthe97Crisis - broken link)
Republicans are always against government regulations. Even when that is EXACTLY WHAT WAS NEEDED to avoid a FINANCIAL CRISIS like we are presently experiencing in the U.S.
Republicans allow both businesses and financial institutions to regulate themselves, so they will make big contributions to their election campaigns.
Then when these corporations fail due to lack of regulatory oversight ... Republicans come to the taxpayers to bail out the corporations ... like we are currently doing for the banking industry.
You've GOT IT REVERSED!!!!
The Republicans wanted the Fannie Mae/Freddie Mac regulated!!!!
Do your homework first.
https://www.authorsden.com/visit/vie...AuthorID=74795
EXCERPT Chris Dodd has recently said that this economic problem is due to the housing foreclosure crisis. Wrong! The foreclosure crisis is a result of the problem, not the cause. The real cause for this problem is subprime lending caused by mandates put on lending institutions to lend housing money to people who cannot afford it. It began back in 1977, during the Carter administration when the Democrats pushed through the “Community Reinvestment Act” (CRA). This bill helped lower income families buy houses they otherwise could not get into. This was a good thing, or so it seemed, and for a while it did exactly what it was intended to do. Enter the Clinton administration. With the help of other Democrats such as Barney Frank and Chris Dodd, CRA was revisited. Changes were made mandating that banks must lend at low interest rates through Fannie Mae and Freddy Mac, under the penalty of massive fines. This was passed against opposition by Republicans. Did this crisis need to happen? No. Someone tried to stop it. Who? Well just guess. If you guessed any Democrat, you are wrong. It was none other than President George W. Bush beginning in 2001, when he first warned of an economic crisis stemming from the housing market. The Democrats made light of it and laughed at him, stating that the markets are just fine. They said that Bush was exaggerating. Then, in 2003, Bush wanted to create a new agency within the Treasury Department to better regulate Fannie Mae and Freddy Mac. Was he successful? NO! Of course not. The Democrats blocked it. Why? Because, they said, it might affect lenders ability to lend money to lower-income families. Barney Frank said, “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.” How “affordable” is it now, Mr. Frank? So nothing was done. Bush’s warnings went unheeded. Someone else stepped up to try to fix this before it became the crisis it is today. It happened in 2005 with the “Housing Enterprise Regulatory Act” submitted by four Republicans, Charles Hagel, Elizabeth Dole, John Sununu and none other than John McCain. That’s right JOHN MCCAIN. But, guess what? The Democrats blocked it. It came up again in 2007, and again the Democrats blocked it.
You've GOT IT REVERSED!!!!
The Republicans wanted the Fannie Mae/Freddie Mac regulated!!!!
Do your homework first.
12 years of Republican control in Congress = Zero GSE reform
18 months of Democratic control in Congress = Bingo
Quote:
Originally Posted by ShoppingCartLaw
EXCERPT
I don't suppose there's any irony in the fact that the supposed author (Paul Kogel) of this screed of fabrication and revisionism is a fantasy/fiction writer?
You may be surprised at how similar the 1997 Asian Financial Crisis is to the 2008 U.S. Financial Crisis.
Here we are 10 years later, experiencing a VERY SIMILAR crisis to the one which occured in Asia back in 1997. You would think our present government would have learned from the Asian crisis!
However ....
Those who don't learn from history are doomed to repeat it ....
Below are quotes from several good articles on the 1997 Asian Crisis:
Heeding the Lessons of the 1997 Asian Financial Crisis as Wall Street Bleeds | Opinion Asia (http://www.opinionasia.org/HeedingtheLessonsofthe97Crisis - broken link)
Republicans are always against government regulations. Even when that is EXACTLY WHAT WAS NEEDED to avoid a FINANCIAL CRISIS like we are presently experiencing in the U.S.
Republicans allow both businesses and financial institutions to regulate themselves, so they will make big contributions to their election campaigns.
Then when these corporations fail due to lack of regulatory oversight ... Republicans come to the taxpayers to bail out the corporations ... like we are currently doing for the banking industry.
They tried to regulate fannie and freddie and the Dems wanted no part of it? Was that because Barney's boyfriend was a top exec at Fannie?
Last edited by laysayfair; 10-08-2008 at 09:09 AM..
Reason: typo
They tried to regulate fannie and freddie and the Dems wanted no part of it? Was that because Barney's boyfriend was a top exec at Fannie?
It was more likely because of things like capping the GSE's ability to hold mortgages in their own portfolio, which would have favored the financing of more McMansions while hindering that of more affordable housing. By the way, McCain had little to do with that bill. He merely signed on as a sponsor. It was written by Chuck Hagel's staff. By the way also, the Republicans controlled the 109th Congress. If they had wanted to pass this bill so badly, they had the votes to do that...
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