Yep. Deregulation in the 1980s led to too much economic power in too few hands. Cause and effect doesn't have to happen in a couple years, it can take a couple decades. When investment banking institutions began to fiddle with mortgages by packaging them into new forms of investments it was just a matter of time before a collapsing housing market would lead to a collapsing economy because these investment banks didn't have enough capital to cover their losses. Deregulation under Reagan led to banks being able to create new forms of investments to stay ahead of the Securities and Exchange Commission. And this isn't just a threat to rich people's hedge funds. Ever wonder what your deposits in your local bank end up funding?
