Hot on the heels of their 2.2 Trillion giveaway to the super rich and corporations, Republicans now are going to turn some of the biggest banks in the country lose to mismanage the economy right back into another 2008 recession. Here it comes again. Maybe I should say, here they go again.
You remember the Great Recession of 2008 don’t you. Lax regulation made it possible for large banks to make a lot of money with risky loans. When the bubble they created burst, American taxpayers were on the hook for well over $100 billion. Worse, the unemployment rate rose from 5% to 10% in just over a year. 8 million Americans lost their jobs. Housing prices fell 30% and stock prices fell 57%. Many Americans ended upside down in their mortgages and lost their homes. Others lost most, if not all, of their retirement savings. Working Americans lost $15 trillion in net worth or 22% of all they had struggled to create. The Great Recession was the worst economic downturn since the Great Depression of the 1930s.
This misery was almost completely the result of the failure of U.S. and other governments to properly regulate large banks. Given the freedom to gamble with other peoples money, the big banks did just that. Bankers and hedge fund managers got super rich. When their house of cards tumbled down, they got a bailout and working Americans paid the bill.
After 2008, Congress adopted banking rules and regulations designed to prevent or at least make a 2008 banking crisis less likely.
Republicans want to roll back those regulations and set 30 of the 38 largest U.S. banks free to engage in the same kind of speculative behavior that led to the 2008 crisis. These banks hold $5.3 trillion in assets, 25% of banking sector assets in the U.S. These banks received $65 billion in a taxpayer-funded bailout the last time they screwed up. They are confident American taxpayers will have no choice but to bail them out the next time. There will be a next time if Republicans give them the freedom to gamble that they are seeking.
Republicans say these banks that are are bigly profitable and sitting on hoards of cash, need relief from the rules and regulations that require capital and stress tests to insure that their banking and lending practices are sound. These banks argue they can make so much more money if they can just once again gamble with the assets of working Americans.
Read more at the links below. Be sure to read the statement by Congresswoman Maxine Waters about the risk Republicans want to take with your money and why the so-called relief these big bankers want is not at all wise or necessary.
WRITE CONGRESS—SAY “NO” TO BANK DE-REGULATION
Here are some links where you can learn more about the risk Republicans want to take with YOUR MONEY:
Statement by Congresswoman Maxine Waters: http://stylemagazine.com/news/2017/dec/20/waters-statement-opposition-bill-rolls-back-import/