How Debt Deregulation and Dark Money Nearly Bankrupted America and How We Can Prevent It From Happening Again

The financial crisis of 2008 was the worst economic crisis since the Great Depression. It led to the collapse of the housing market, the failure of major banks, and a deep recession. The crisis was caused by a number of factors, including:

Reckless!: How Debt, Deregulation, and Dark Money Nearly Bankrupted America (And How We Can Fix It!)

by Byron L. Dorgan

4.9 out of 5

Language	:	English
File size	:	533 KB
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Screen Reader	:	Supported
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Print length	:	287 pages
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• Debt deregulation: In the years leading up to the crisis, the government deregulated the financial industry. This deregulation allowed banks to take on more risk, which they did by making subprime mortgages to borrowers with poor credit.
• Dark money: Dark money is money that is donated to political campaigns without disclosing the donor's identity. This money allowed lobbyists to influence politicians to pass laws that benefited the financial industry.

The financial crisis had a devastating impact on the American economy. It led to the loss of millions of jobs, the collapse of the housing market, and a deep recession. The crisis also eroded public trust in the financial system and the government.

In the wake of the crisis, the government passed a number of reforms to prevent it from happening again. These reforms included:

• The Dodd-Frank Wall Street Reform and Consumer Protection Act: This law increased regulation of the financial industry and created a new agency to oversee the financial system.
• The Citizens United v. FEC decision: This Supreme Court ruling allowed corporations and unions to spend unlimited amounts of money on political campaigns. This decision made it easier for lobbyists to influence politicians.

These reforms have helped to make the financial system more stable, but there is still more that can be done to prevent another financial crisis. One important step is to close the loopholes that allow dark money to flow into politics. Another step is to increase regulation of the financial industry. By taking these steps, we can help to ensure that the financial crisis of 2008 never happens again.

How to close the loopholes that allow dark money to flow into politics

There are a number of ways to close the loopholes that allow dark money to flow into politics. One way is to require all political donations to be disclosed. This would make it more difficult for lobbyists to influence politicians without the public knowing about it.

Another way to close the loopholes is to ban corporate and union donations to political campaigns. This would prevent corporations and unions from using their money to influence elections.

Finally, we can close the loopholes by passing a constitutional amendment that overturns the Citizens United decision. This amendment would restore the government's ability to regulate campaign finance.

How to increase regulation of the financial industry

There are a number of ways to increase regulation of the financial industry. One way is to increase the capital requirements for banks. This would require banks to hold more money in reserve, which would make them less likely to fail.

Another way to increase regulation is to limit the amount of risk that banks can take. This would prevent banks from making risky investments that could lead to a financial crisis.

Finally, we can increase regulation by creating a new agency to oversee the financial system. This agency would be responsible for monitoring the financial industry and taking action to prevent another financial crisis.

The financial crisis of 2008 was a preventable disaster. It was caused by debt deregulation and dark money, and it had a devastating impact on the American economy. We must learn from the mistakes of the past and take steps to prevent another financial crisis from happening again. We can do this by closing the loopholes that allow dark money to flow into politics, increasing regulation of the financial industry, and passing a constitutional amendment that overturns the Citizens United decision.

Reckless!: How Debt, Deregulation, and Dark Money Nearly Bankrupted America (And How We Can Fix It!)

by Byron L. Dorgan

4.9 out of 5

Language	:	English
File size	:	533 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	287 pages
X-Ray for textbooks	:	Enabled

FREE