How A 2005 Law to Prevent Bankruptcies Led to the 2008 Recession

[Celerity]

13. Obama's words were a warning of rigid, doctrinaire progressiveness, you are positing a non sequitur

Whilst I do not think the the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (which Biden was a major force behind) was the cause of the 2007-2009 financial crisis (to call it a recession is to undersell to to an extreme degree, as well over 30 TRILLION USD was wiped off the books globally) it has had a tremendously negative impact on the middle and working class. It is one of the major reasons I do not support Biden in the primaries. It has also thrown an absolute spanner into the works of millions of ex-college students, as it has made getting out from under ruinous student loan debt damn near impossible for millions of of my age (I am 23, so call it 40yo and under) cohort.

As for the actual, fundamental root causes of that horrific, global crash (also Biden supported) I present this:

These are bi-partisan in nature, and the worst of the Clintonian legacy:

1 The repeal of Glass-Steagall

On November 12, 1999, President Clinton signed the Financial Services Modernization Act (the Gramm-Leach-Bliley Act) that repealed Glass-Steagall.

On November 4, the final bill resolving the differences was passed by the Senate 90–8 and by the House 362–57. The legislation was signed into law by President Bill Clinton on November 12, 1999.

Glass Steagall Act of 1933, Its Purpose and Repeal
This 1933 Law Would Have Prevented the Financial Crisis

https://www.thebalance.com/glass-steagall-act-definition-purpose-and-repeal-3305850




2 The even more odious Commodity Futures Modernization Act of 2000, which re-legalised most OTC derivatives including credit swaps (derivatives of multiple flavours were the instruments that were so crucial to the meltdown in sub-prime mortgages).

The House passed the Conference Report and, therefore, H.R. 4577 in a vote of 292-60. The Senate passed it by unanimous consent (over the objections of Paul Wellstone and James Inofe). Clinton signed it into law on December 21, 2000.




How Congress Rushed a Bill that Helped Bring the Economy to Its Knees

https://www.huffpost.com/entry/how-congress-rushed-a-bil_b_181926




Great video about Brooksley Born, who trying to warn about this, and was completely shut down by Lawrence Summers, Robert Rubin, et. al

The Warning

Long before the economic meltdown, one woman tried to warn about the threat to the financial system...

https://www.pbs.org/video/frontline-the-warning/