Glass-Steagall was more than just about preventing the mortgage crisis. When investment banking, which was not backed by the FDIC, was merged with commercial banking, which was, it essentially meant that big banks could take massive speculative risks and then get bailed out with Federal dollars. In fact, that is exactly what happened in the aftermath of 2008-9. We now have massive imbedded risks, because the tax payers and the 99% are going to be used to continually bail these rich guys out when their risks go bad. It's capitalism when they make money and socialism taken from the 99% when their bets go bad. How is that fair or just?
We want the 99%'s savings to be backed by the FDIC and bailouts, so they don't lose their shirts when banks go bust. But we do NOT want investment banking speculators to get bailed out when their gambling goes bad. Glass-Steagall was a firewall that helped prevent that kind of thing in the past. Dodd-Frank is a piece of shit with no teeth and does not prevent bailouts.
So to me, the mortgage crisis was just the tip of the iceberg. The solutions implemented in the aftermath, especially the bailouts, are the true iceberg that STILL EXISTS. This economic titanic is now complete fragile and the 99% is paying the price for it.
So Ocasio may have no clue what she's advocating for, but I assure you Warren gets what I articulate above. On this point, I am in 100% agreement with both of them and don't care if they have different reasons for it. If they get Glass-Steagall reimplemented, then I will cheer them on for that issue only.
BTW, this is the problem with our politics. We're all supposed to be 100% Republican or Democrat, but are not allowed to have nuanced, common sense approaches to problems, especially if they cross party lines. I HATE our two party system. It's dysfunctional and prevents thinking people from compromising to get good solutions. |
