economy crisis

I have wondered about where this whole Freddie Mac and Fannie Mae thing started.  How did things get so out of control where a few companies could impact our economy so greatly?  Maybe this is the beginning of the answer.  From the debate on 9/26/08:

OBAMA: “We’re also going to have to look at, how is it that we shredded so many regulations? We did not set up a 21st-century regulatory framework to deal with these problems. And that in part has to do with an economic philosophy that says that regulation is always bad.”

THE FACTS: Some of the abuses that occurred stemmed from the 1999 repeal of a Depression-era law that separated banks from brokerages. In legislation supported by former President Clinton and Robert Rubin, now a top Obama adviser and treasury secretary in the Clinton administration, this separation was ended — allowing banks and insurance companies to sell securities.

But while regular banks were strictly regulated by the government, Wall Street banks and other non-bank institutions — many of the same institutions whose abuses led to the current crisis — were allowed to operate with less regulation.