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  • European Banks Expose the Left's Deregulation Myth

    As the current financial crisis unfolds, the left has consistently tried to pin the blame on “deregulation” amorphously and President Bush specifically. So, for example, on the campaign trail Barack Obama blames the financial crisis on “ the Bush administration, Republican party and John McCain for pushing a culture of deregulation.

    But as powerful as President Bush is, he is not the ‘President of the World’. Europe’s banks, for example, are much more heavily regulated than their U.S. counterparts and they are often even state owned. So how are things fairing over in heavy-regulation paradise? The Washington Post reports:

    In Italy, officials suspended trading in Unicredit — the country’s biggest bank, with more than $1.4 trillion in assets — after its stock price lost almost a quarter of its value. In Germany, officials fretted over the health of a subsidiary of Commerzbank as well as several state-owned regional banks that have posted heavy losses. … [In France] President Nicolas Sarkozy … was forced to negotiate a $9.2 billion emergency bailout Monday for Dexia, the troubled Franco-Belgian bank.

    So what happened? Why did the awesome European regulators fail?

    As European taxpayers absorbed the rapidly escalating expense of bank bailouts, lawmakers on the continent toned down their criticism of Wall Street as the origin of the problem and started to blame their own lenders for gorging on subprime loans and other risky investments.

    Seems the root cause of this problem is not banking regulation at all, but bad housing loans. And we know who caused that crisis.

    Posted in Economics [slideshow_deploy]

    6 Responses to European Banks Expose the Left's Deregulation Myth

    1. Pingback: European Banks Expose the Left’s Deregulation Myth

    2. John, Minnesota says:

      Can someone go to the highest mountain and start screaming this please!!????!!! Why is this not being clearly stated by the ENTIRE Republican Party? Is it time to shut down the Republican Party and move to the Libertarian Party!? Get some leadership or I am out of here.

    3. Pingback: European Banks Expose the Left’s Deregulation Myth

    4. Kevin, Maryland says:

      The closest person to reform this crappy mess caused by fear & greed is Sarah Palin, and true Maverics. The only person she owes anything to is the people she represents. Honest Americans. She has proved that she can do that. Does she have criminal dealings with pocket padders? No. Political parties have lost credibility. Wake up America and pray.

    5. Scott Z. says:

      Sarah Palin a Maverick? Are you kidding me? lol

      How did she prove she can do anything? She's hidden from the media from day one and when she did interviews, she couldn't answer SIMPLE softball questions like, …1) what supreme court ruling she didn't agree with (2) she couldn't name a source of news she read regularly (3) she couldn't name a piece of legislation that McCain the guy that offered her the VP candidacy to. She's TOO simple minded, that's the problem. She's a Christian nutjob. I'M CHRISTIAN from North Dakota and PALIN scares me to DEATH. My family tends to lean right, but this year, we're actually voting for Obama. The past 8 years have been horrible for a lot of us, McCain just doesn't seem too different from Bush sadly.

    6. Pingback: Jason’s Blog » Blog Archive » European Banks Expose the Left’s Deregulation Myth

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