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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (71855)	9/11/2009 12:52:58 PM
From: JakeStraw	Respond to of 224729

>>Repeal of Glasman-Steagal... That's Glass-Steagall... Gee shouldn't a proposed lawyer know that?!

To: Kenneth E. Phillipps who wrote (71855)	9/11/2009 1:34:38 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 224729

Repeal of Glasman-Steagal meant less regulation of financial sector. and that would be meaningful if you left it in the context of what happened next with Fannie Mae/Freddie Mac and the subprime mortgage crisis and then brought up congress' complicity in the whole mess. Repealing Glass-Steagall may have been some deregulation, but it was followed by more government meddling that precipitated the current economic landscape.

To: Kenneth E. Phillipps who wrote (71855)	9/11/2009 7:43:15 PM
From: SGJ	2 Recommendations Respond to of 224729

The '33 Glass Steagall Act specifically kept banks and securities firms lines of business separate so banks would not speculate in risky securities with your potential mattress money. After it was repealed in '99 under Clinton, banks could buy certain securities like MBS's. Of course, as now we know. many have gone into the toilet. I contend though, that even if it was still in effect, banks could have still gotten heavily involved in residential lending and suffered the consequences irregardless of the form the real estate asset took. Also, keep in mind that many banks have survived this crisis, due to the income provided by the other lines of business now allowed by the repeal.