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Commodities Futures Modernization Act

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  • Strongly Liberal Democrat
    Democrat
    Pensacola, FL
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    Apparently attention is focused on Glas/Steagall when discussing blame and causes of the 2008 crisis. At most Glas/Steagall is used as a diversion to cloud suspicion for blame in the 2008 crash. The real , directly traceable and conived cause of 2008 was the Commodities Futures Modernization Act. That law allowed the expansion of the definition of futures to include historically not eligible entities. It also allowed that trading to be non regulated. That allowed the subprime mortgages to be used as security. That prioritized mortgages: accelerating, expanding and easing qualifications in the rush to issue more mortgages faster. Risk was digarded but risk materialized causing the collapse. Directly traceable to the CFMA signed into law by Bill Clinton. The CFMA still stands still offering the same possibility as 2008.