Two party system”. Is new regulation killing job growth? Why has financial regulation created increased job losses and decreased job creation? For the last six decades financial regulation was working fine for America. Anti regulation has destroyed killing job growth. Financial regulation, deregulation, banking over leverage call it what you may created the criminal act that drove the US financial crises causing this current recession.
Public and Private sector jobs in this recession have been devastating in terms of the loss of state and local governmental jobs.
The economy needs to produce new jobs to employ entrants into the workforce, so the unemployment rates fall significantly.
The recession called “The Great Recession” shows why the anti-regulators are the job killers in America. Private sector job losses rose as late as March 2010. This does not include state and local government workers and the lower class, the hardest hit. The Great Recession was triggered by the collapse of the Housing Market crash of mortgage fraud by lenders and banking over leveraged. Key leadership positions at the federal level did nothing.
Alan Greenspan, the Federal Reserve chairman did nothing. He should have deregulated the banking industry and raised the interest rate in 2003. Mortgage fraud was centered on loans that the lending industry referred to as “liar’s loans.” Any anti-regulatory identifiable loans would have the banks not to make fraudulent loans. None of this was regulated by the federal government.
Federal regulators actively made preempting state efforts to protect the public from predatory and fraudulent loans. Greenspan was particularly responsible. Federal regulatory authority regulated any housing lender after the “liar’s loans” had ended authorizes by current reserve chairman Ben Bernanke. The Feds also had ordered evidence of the frauds and abuses in non prime lending because “Congress mandated that the Fed hold hearings on predatory lending”. The Savings and Loans disaster, the Enron investment frauds, and the current crisis were all driven by bookkeeping fraud and anti-regulators.
What kept the anti-regulators moving forward, the Clinton, Bush and Obama administrations have displayed opposition to strong regulation and have appointed regulatory leaders largely on the basis of their resistance to anti-regulation. “When these administrations occasionally blundered and appointed, or inherited, regulatory leaders that believed in regulating the administration attacked the regulators”.
Congressional leaders forced the “Financial Accounting Standards Board (FASB)” into trashing the accounting rules so that the banks had “Prompt Corrective Action (PCA) law.” The new House leadership recently announced its intent to give a “free pass to the accounting control frauds, their political patrons, and the anti-regulators that created the crimes that hyper-inflated the financial bubble that triggered” anti-regulatory killed jobs created the Great Recession and caused a loss of integrity.
Politicians make strange bedfellows.