THE RISE OF POLITICAL CONSERVATISM 1980 1992
PRESIDENT GEORGE HW BUSH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks got the government to have as few rules as possible so the congressmen could retire and work in the banking industry.
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Banks had a lot of rules added to government laws which made it difficult for them to make money the traditional way.
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Banks got the government to have as few rules as possible for banks so they could sell bundled loans as investments.
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Banks had so many regulations on their industry that they resorted to unusual schemes, like loan bundling, to make money.
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Detailed explanation-1: -Deregulation in the financial industry was the primary cause of the 2008 financial crash. It allowed speculation on derivatives backed by cheap, wantonly-issued mortgages, available to even those with questionable creditworthiness.
Detailed explanation-2: -The S&L crisis culminated in the collapse of hundreds of savings & loan institutions and the insolvency of the Federal Savings and Loan Insurance Corporation, which cost taxpayers many billions of dollars and contributed to the recession of 1990–91.
Detailed explanation-3: -President Clinton’s tenure was characterized by economic prosperity and financial deregulation, which in many ways set the stage for the excesses of recent years.
Detailed explanation-4: -The mutual savings banks and thrifts were severely affected by the deregulation of interest rates. Insolvent thrifts were allowed to use brokered deposits to stay in operation and to grow their assets or engage in new activities that could not have been funded through traditional sources.