It’s soon to be ten years since the U.S. (and then the world’s) economy “fell off a cliff.” What significant changes are in place to prevent it from happening for virtually all the same causes?
We made Trump president.
HAHAHAHAHAHAHAHAHHAH!! my sides
There are a number of regulatory legislation and frameworks passed like Dodd-Frank or the Basel Accords. They are fairly broad and there is really too much minutiae for me to cover here, but feel free to Google them.
One specific thing I’ve been involved with over the past couple of years is a initiative around setting margin requirements for complex instruments like swaps and derivatives (the things that nearly destroyed the economy). Essentially what that means in laymans terms is that banks are required to keep enough cash on hand to cover potential losses from trading in these things. It was the banks inability to do so ten years ago that rendered Bear Stearns and Lehman insolvent and almost did the same to AIG.
President Trump has promised to repeal Dodd-Frank.
Basel III seems to be our bulwark of financial stability.
The only significance of a centennial is to show that the number of our planet’s astronomical revolutions around the sun since an event is equal to a power of the number of fingers evolved on the human hands.
Not quite all the world’s economies.
There is a modest (G20) sized economy here in the south Pacific which hasn’t recorded a recession in over 25 year (103 quarters).
Since a lot of too powerful people are in denial about what caused it, I would say none.
My wife and I bought a house a few years before the crash, and then refinanced in 2009. I don’t even remember the appraisal for the purchase; they may have just driven by and said to themselves, “yep, there’s a house there.” OTOH, the appraisal for the post-crash refi involved a guy coming into our house, measuring every room, and assessing the general condition of the house.
Does anyone else have similar experience, i.e. appraisers being much more thorough post-crash?
What about banks? Did they stop with the robosigning and slap-dash handling of documents? In the few years after the crash ISTR a number of cases where banks tried to foreclose on the wrong house, or tried to foreclose but ultimately couldn’t prove they were the lender of record because they were so sloppy with their documentation. Are they being more thorough these days?