The 1999 repeal of Glass-Steagall enabled the 2008 crisis

Evidence

In 2006 US housing prices reached a turning point, and their decline began to weigh on the rest of the economy. Household wealth decreased in tandem, leading to lowered consumption and eventually to a series of mortgage non-payments. As the financial system had become increasingly tied to the mortgage market, it was inevitable that the decline in housing prices would wreak havoc on the financial sector. — Nick Srnicek, Platform Capitalism, 31 (#complicates, via linked claim)

Categorization

• XREF: connects to: 1999 repeal of Glass-Steagall drove America’s debt and securities explosion — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 40; Housing price declines triggered the 2008 financial crisis — Nick Srnicek, Platform Capitalism, 31; Glass-Steagall repeal broadened official support for reckless speculation — Aris Komporozos-Athanasiou, Speculative Communities: Living With…, 71

Broader Connections

• Housing price declines triggered the 2008 financial crisis #complicates (0.72) — Nick Srnicek, Platform Capitalism, 31