How is the current financial crisis linked to Reagan?

Reagan came up with "trickle down economics". Let the rich suck up all the country's wealth, and then they will create jobs for the people. But what happened was they just sucked up the wealth but didn't give Americans jobs. Instead they hired cheap labor overseas, where they don't have to worry about human rights or health care expenses. Clinton tried to bring things back to a balance between rich and poor, but then Bush Jr brought in major tax cuts for the rich. This sent us over the top, and we collapsed.How is the current financial crisis linked to Reagan?By beginning the breakdown of barriers between Banks, S%26amp;L, Insurance Co., Investment Banks. All in the name of "being competitive." Fee income became king, and the larger the risk, the larger the fee. A high risk investment does not become less risky if it is split between banks, it just affects more banks. Allowing mergers for economies of scale actually made the system and individual companies less stable, not more stable.



Would you like to put your life savings into a mortgage backed security with thousands of underlying , high yield mortgages because of higher risk, in order to yield a higher rate of return? You can also take your savings and invest in the same security stripped of the interest rate, discounted until maturity for even a larger return? All of this, of course, is done without your approval, and the trading bank generates a fee for making a market in these. Your input into this transaction is your withdrawal of $20 from the ATM. Your deposit does not earn any interest of consequence.



Did the "Super Bank" theory work out for us?How is the current financial crisis linked to Reagan?
It isint.



Clinton had the largest deregulation of the banking systems, but noone seems to acknowledge that. See Glass-Stegal



As well, they simplay parrot "reagan, Deregulation" witout being able to site any specific examples of WHAT deregulation it was that did this.How is the current financial crisis linked to Reagan?Reagan created the current Republican party but had a brain. Without someone with a brain leading it, you have tax cuts all the time and deregulation all the time, without knowing that sometimes you need to increase taxes and increase regulation.How is the current financial crisis linked to Reagan?
the crisis is bad and reagan was a republican so they must be associated. i think that is the lefts reasoning.

in reality reaganomics pulled us out of the carter recession and gave us our longest period of peacetime growth in our history.How is the current financial crisis linked to Reagan?The financial crisis is in part caused by our abandonment of Reagan's conservative economic policies. The length of the crisis will be extended due to the fact that we continue to ignore Reagan's economic principles.How is the current financial crisis linked to Reagan?
Does the word deregulation ring a bell?