Quote:
Originally Posted by Derwood
There's a lengthy article in the newest Rolling Stone that says the banks are setting us up for another fall here shortly. I haven't read all of it, but I'll summarize when I'm done
|
I have not seen the Rolling Stone article, but as the financial crisis gets studied what we will find is most of the problems revolve around the repeal of the Glass-Steagall act in 1999, signed by Bill Clinton, written by Republicans with virtually unanimous bi-partisan support. This allowed commercial banks to engage in investment banking activities, to date nothing has changed. The exposure of a catastrophic repeat is very real. Congress needs to act separating commercial banking activity from investment banking activity. This is not a "failed Bush administration policy" it is a failed banking policy. It would be nice for people to stop the blame game and get the job done. So, in spite of Obama's rhetoric we are still at risk, and I think or hope he knows it. Volcker seems to have Obama's ear and is certainty sending that message.