I had heard someone blaming our favorite national scapegoat, George Bush,for the nation’s mortgage meltdown.
That piqued my curiosity so I did a little digging to see if that was actually true. What I found, and what we’re witnessing, is actually part of the Bill Clinton legacy. Probably not the one he has been hoping for, though. In 1999 President Bill Clinton rescinded the Glass-Steagall Act. This act had protected our monetary system since the Great Depression. At the suggestion of Fed Chairman Alan Greenspan and U.S. Treasury Secretary Robert Rubin, it was repealed and signed into law by Bill Clinton. The Glass-Steagall act would of kept us from this current calamity but with one swipe of the pen, the wall keeping home loans from being traded as securities was gone. Once that wall was gone, lenders didn’t care if a person could make the payment on a home loan because it would be sold soon to another company (China), as an investment, and be the next company’s problem.
Treasury Seceretary Rubin
“The banking industry is fundamentally different from what it was two decades ago, let alone in 1933.” He said the industry has been transformed into a global business of facilitating capital formation through diverse new products, services and markets. “U.S. banks generally engage in a broader range of securities activities abroad than is permitted domestically,” said the Treasury secretary. “Even domestically, the separation of investment banking and commercial banking envisioned by Glass-Steagall has eroded significantly.”
Looking forward to your comments.
Source: napavalley register
Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs
In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.
For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.
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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.
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