My Voice of Reason

October 28, 2008

Why Wall Street Crashed! What YOU NEED to KNOW!

Filed under: Economy,McCain,Palin,Politics — Vaughn @ 1:32 am
Tags: , , , ,


Credit Defaut Swaps‘ <<<<Watch the Video

Watch the video first and when you are through you will want to know more about the “Commodity Futures Modernization Act of 2000” and here are your answers.  

The “Commodity Futures Modernization Act of 2000” 

(H.R. 5660) was introduced in the House on Dec. 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.[2]

The companion bill (S.3283) was introduced in the Senate on Dec. 15th, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen.Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.

Given the above-stated chronology, it would appear that the House and Senate versions of the bill were introduced just prior to the Christmas holiday in December of 2000, following George W Bush’s (first) election (in November of 2000), while then-President Clinton was serving out his final days as President. The bill was never debated by the House or Senate. The bill by-passed the substantive policy committees in both the House and the Senate so that there were neither hearings nor opportunities for recorded committee votes. In substance, it appears that the leadership of the Republican-controlled Senate and House incorporated the deregulation of credit default swaps into an omnibus budget bill (without hearings or recorded votes)at a time when the outgoing president was in no position to veto anything. The following article suggests that Bill Clinton and Alan Greenspan endorsed this law The Bet That Blew Up Wall Street though Clinton’s position in 2000 is only suggested, not confirmed or made clear in the report.

The Republican leadership of the House incorporated“The Commodity Futures Modernization Act of 2000(H.R. 5660)” by reference, as Section 1(a)(7), in a long and complex conference report to the 11,000 page long “2000 omnibus budget bill” formally known as “The Consolidated Appropriations Act for FY2001(Labor, Health and Human Services, and Education Appropriations Bill) (H.R. 4577).”157 Democrats and 133 Republicans voted for the appropriations bill. 51 Republicans and 9 Democrats opposed the appropriations bill vote results in the house. The Senate version passed by “Unanimous Consent.” President Clinton signed it into Public Law (106-554) on December 21, 2000

I know it is probably only me, but why is it that Phil Gramm’s name keeps coming up in every major scandal surrounding lots of money leaving American’s pockets and entering his?  

Enron? Wall Street? who will be next on Senator McCain’s chief economic advisors trail of skidrowed American’s or Wealthy Politicians be?  Is this really the kind of person we want in the White House?  Is this John McCain’s choice for sound economical advise?  John seems to think so, me I think… not so much.  My guess is he would be our next Treasury Secretary, he probably couldn’t do much damage there.  

If you want to do some digging on Gramm you will find all sorts of skeletons and crazy part is they aren’t even in the closet.

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4 Comments »

  1. […] Why Wall Street Crashed! What YOU NEED to KNOW! […]

    Pingback by Okay this is my last Spot light of the night. « Chamay0’s Weblog — October 28, 2008 @ 4:07 am

  2. Missing a valid issue.

    The concern to me is “how” both House & Senate were bypassed and the bill signed into law. The changes were made on the 14th and 15th of December. The bill was signed into law on the 22nd of December. How can any body of government legally “…by-passed the substantive policy committees in both the House and the Senate so that there were neither hearings nor opportunities for recorded committee votes?”

    The issue here is not that a law was passed that had 60 trillions dollars of mass financial destruction. The issue here is the government has a “procedural due process” that can circumvent substantive due process. You note no one is saying what they did was illegal. The procedural method “used” to pass this law is valid, legal and still available for future “use.” You might say the method that allows this could be far more damaging to the American People over time then the law that was already passed.

    Comment by Nathan — October 28, 2008 @ 9:27 pm

  3. my bad…the paragraph should have read:

    The issue here is not that a law was passed that had 60 trillions dollars of mass financial destruction. The issue here is the government has the ability to skip “procedural due process” and “substantive due process.” You note no one is saying what they did was illegal. The procedural method “used” to pass this law violates the very foundation of law. You cannot say due process was meet “the exercise of government power under the rule of law with due regard for the essential and fundamental fairness rights of individuals” by allowing a law without due process.

    http://faculty.ncwc.edu/mstevens/410/410lect06.htm

    Comment by Nathan — October 28, 2008 @ 9:36 pm

  4. Nate,
    Thank you for your insight as it is an incredibly important point to make. This is truly a transparency of Government issue and demonstrates just how frightening this really is. A bipartisan Congress working hand in hand with the executive branch to essentially make something that was illegal, legal. They also made sure to write into this that States could not bring suit against those that would have, prior to legislation, been breaking the law.

    Comment by Vaughn — October 28, 2008 @ 9:37 pm


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