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Post by unlawflcombatnt on Jun 13, 2007 3:37:56 GMT -6
A very interesting article was posted at naked capitalism regarding some seemingly insane regulatory changes by the SEC. While the Fed and the Treasury Dept. see increasing risk to the financial system, the SEC has made a completely contradictory maneuver-- it's reduced the capital requirements for the largest investment banks. This move allows such firms as Goldman Sachs, Morgan Stanley, Merrill Lynch, and Lehman Brothers to reduce their required reserve amounts, thus allowing them to loan out even larger sums of money. Just what we need, an even further expansion of debt for our already debt-overloaded economy. This article from nakedcapitalism can be found at www.nakedcapitalism.com/2007/06/do-regulators-talk-to-each-other-prime.html
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Post by beachbumbob on Jun 20, 2007 6:12:36 GMT -6
no big surprise here. 1980's S&L meltdown was preceed with massive deregulation which included lessening of cash reserves which led to the meltdown
history has a way to repeat
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