When Obama lost control of the Banking Crisis

[FluffyMcDeath]

William K. Black says that the banking crisis is continuing and getting worse because the corrective actions required have not been taken. He sees a parallel with how the S&L problem was initially handled (allowing it to get much worse by covering it up) and how the current problem is being handled.

The administration, Congress, and the media treated these Pratt's fictional "resolutions" and claims of brilliance as real. By allowing S&Ls to hide real losses and create fictional income, deregulating, desupervising, closing none of the control frauds (which were growing in assets at an annual rate of 50%), and making virtually no criminal referrals (which mean there were no prosecutions), Pratt (and several states that won the "competition in laxity") created an intensely criminogenic environment that led to the entry of hundreds of control frauds into the S&L industry.

The real problems were covered up so as not to rock the boat and crooks recognized a safe haven.

For reasons that only Summers, Geithner, and Obama can know, they chose to adopt Pratt's disastrous and dishonest anti-regulatory strategy and parrot his dishonest claims of brilliance and success.

Perhaps Ron Suskind can also know or at least help shed a little light since he has written a book on the very subject.
Here is Ron on the Dylan Ratigan Show.

 

[Dammy]

Obama never had control in the first place. They have control of him.