March 26, 2008

Time travel

The following is from a New York Times article 'What Created This Monster?' that details how decades of deregulation have brought us back to 1929:

For example, in the old system, savers had federally insured deposits in tightly regulated savings banks, and banks used that money to make home loans. Over time, however, this was partly replaced by a system in which savers put their money in funds that bought asset-backed commercial paper from special investment vehicles that bought collateralized debt obligations created from securitized mortgages — with nary a regulator in sight.



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