It's interesting to note that Clinton himself is one who signed the Commodity Futures Modernization Act of 2000, which essentially allowed banks selling products to not be regulated as futures contracts. Apparently, this act also allowed for the Enron "loophole" to occur. In terms of deregulation, CDS were allowed to exist through this manner, thus preventing the government from monitoring banks over this loophole.
Interestingly enough, the market was into trillions by the time 2007 rolled around. No wonder why we got into so much trouble. Although a new market had been created, it was one based on a huge amount of risk, ready to explode once the subprime market collapsed. But obviously by that point, those responsible for this crash would have gotten out with their multi-millions.
The more I think about it, the more I realize that just giving AIG's executives taxes on their recent bonuses by the government is going to stop the bleeding. Unfortunately, the public at large is still too blind to see that AIG is just one group in all of this. You're really talking about a much broader scale. It's practically the entire financial market and the government. And you can't pinpoint the blame just on Republicans, nor Bush.
Looking at this article, you can see that both Democrats and Republicans were both contriving to set this bill up. And apparently, corporate lobbyists (notably from Enron) had helped set this one up.
I have a new saying. If it's too big, it should fail.
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