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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 23.27+0.5%Dec 26 3:59 PM EST
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To: MeDroogies who wrote (2528)2/7/2003 11:17:21 PM
From: The Duke of URL©  Read Replies (1) of 4345
 
"but to avoid having a situation where banks, carrying the funds from individual savings, would be exposed to the downside of heavy leverage from the investment side of the business."

Sort of.

Glass-Stegall was not enacted to save the banks. GlassStegal PREVENTED banks from being in any Insurance, Real Estate or Brokerage business.

Why?
One, because they are doing it WITH FEDERALLY INSURED TAXPAYER MONEY,

and Two, if you allow banks into business, they end up only lending to their own businesses and foreclose on any one else. This gives them more money for their own businesses.

BUT IT DIVERTS CAPITAL FROM LEGITIMATE BUSINESSES.

And they do it all with Federally Insured Taxpayer money, so who cares if they lose it.

The act prevented banks from being brokerage houses because they will destroy the stock market because it competes with the lending market.

Take a real close look at the Single Family Dwelling market next chance you get.

The repeal of Glass Stegall (and the preceding Nine years of administrative erosion by the Fed) allowed Citicorp to pump Enron through its subsidiary Smith Barney and then short it on the way down when only they knew they were going to call the loans THAT WERE SECURED BY 15 BILLION DOLLARS WORTH OF NEWLY ISSUED ENRON STOCK which only Citicorp new it was dumping on the market. All the while pumping the stock to their depositors.

Blaming the Great Depression on the Smoot Hawley Act or Florida realestate IS A PRESS RELEASE.

to be continued.....
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