I did a lot of reading on this subject,and suggest you do the same, in order to better understand the economic downturn we are currently in.
The whole mess started in the 80's when the Federal Gov., under Reagan and the Tres. Dept Sec. Donald Regan, started to deregulate the banking industry. This practice continue under both Clinton and Bush. The result was a windfall for bankers and Wall street traders. It also led to the 2008 recession and the 9% unemployment rate..
During this period laws were changed that allowed bankers to get rich and control more and more of the wealth of this economy. President Obama wants to use more regulation in an attempt to stabilize the industry but faces opposition from the Republicans in Congress.
This story is way to long and detailed to explain in a blog so I suggest that you watch a movie called "Inside Job" ,narrated by Matt Damon.
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