These were major actors. When you’re talking about Greenspan, Cox, Snow, who saw the hurricane coming, just as there were some who saw Katrina coming, and literally took no action. We have find out why because essentially, the only remedy we’ve been left with is bailout.

I was particularly concerned with the timeframe during which a remedy or some remedies could have been found. We got some interesting answers, one of the best, considering the mortgage crisis, was that everyone who has a mortgage should be left with some “skin in the game,” to quote former Secretary of the Treasury Snow. If you can simply securitize the mortgage and pass it off into the global economy to nobody knows where, of course, you might then give a mortgage to almost anyone, which has occurred with sub-prime and other mortgages. That’s a whole lot different from the types of mortgages we were accustomed to where you knew the banker who had the mortgage and it didn’t want ever to get the house back and you behaved accordingly.
– Hear Norton on the answers she got from Greenspan, SEC Commission Chair Christopher Cox, and former Treasury Secretary Job Snow on why they took no action to prevent the economic crisis at her Town Hall Meeting, “The Bailout and the Economy: What Happened, What’s Next, What it Means to You, D.C., and the USA.” It will be held Oct. 28, 6:30 – 8:30 p.m. in the Gold Room, rm. 2168, Rayburn House Office Building.

This entry was posted on Saturday, October 25th, 2008 at 11:00 am and is filed under Uncategorized .