Phil Gramm: Subprime Architect

Where did Subprime Mortgages come from? Shredded oversight? Creation of Derivatives that had no regulation? Eliminating Depression-era barriers that restricted the rise and reach of financial conglomerates?

Read this article on the architect Phil Gramm, retired Republican, in the NYT yesterday.

“To me, Phil Gramm is the single most important reason for the current financial crisis.” - Michael D. Donovan, a former S.E.C. lawyer.

Conservatives can say what they will about free markets The reason we have regulations is because capitalism remains, basically, theft.

A quick synopsis via a commenter:
"The Fed wanted to create a smokescreen to fool working-class Americans into thinking they didn't need wealth, decent jobs, income.

Americans were losing wealth via Globalization, GDP was redefined to mean anything made anywhere so "Supply Side" could sweep "Free Market" failures under the rug. Meanwhile, Americans were desperate to keep their houses while losing their incomes so they made a deal with the Devil and let the bankers rope them into predatory loans, passing the bad loans onto their fellow bankers - "Hot Potato" until the Piper came around.

Now, Americans are realizing they really don't have wealth in the world of "Trickle Down" economics, they're losing everything and find that their children are covering the bankers for any loss they might have incurred.

Great system, Capitalism."

Source: NYT