We've been slowly turning the country over to a bunch of white, Ivy league educated (and I use the term loosely, studying "banking" at college is akin to studying basket-weaving) morons...
Since the 80's banks and republicans/conservatives have been clamoring for the repeal of depression era laws that compartmentalize commercial banking, investment banking and insurance. The last of those laws fell in 1999 with the "Commodity Futures Modernization Act" -- which literally made it legal for banks to create ANY new type of investment vehicle they wanted -- and assured that they would be outside government regulation. Clinton got to sign that cap-stone into law.
How else could we have ended up with a CDS market which traded more than $42 TRILLION dollars worth of these new, unregulated securities. ... Along with the demand for "bundled" mortgages that underlie all the chaos.
Capitalism must be saved from its own excesses... It functions on greed -- and greed run amok ALWAYS leads to disaster.
Clinton Says Don't Blame Him for the Economic Crisis
The magazine's story, which apportioned blame widely between such figures as Countrywide co-founder Angelo Mozilo, former Federal Reserve Chairman Alan Greenspan, Lehman Brothers CEO Dick Fuld and President George W. Bush, zeroed in on two specific economic policy decisions made during the Clinton administration. Clinton ushered out the Glass-Steagall Act, which for decades had separated commercial and investment banking, and signed the Commodity Futures Modernization Act - which exempted all derivatives, including the now-notorious credit-default swaps, from federal regulation. His administration also loosened housing rules, which added pressure on banks to lend in low-income neighborhoods.
"None of it was an endorsement of permissive lending and risk-taking," the magazine concluded. "But if you believe deregulation is to blame for our troubles, then Clinton earned a share too."