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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: DuckTapeSunroof who wrote (41611)3/2/2010 2:18:06 PM
From: TimF  Read Replies (1) | Respond to of 71588
 
And... a GREATER PERIODICITY for mass financial panics and failures and crashes is most certainly *not* conducive to higher levels of either wealth or economic output.

1 - There isn't a good reason to think that Glass Steagal reduced the occurrence or severity of financial panics/failures/crashes. In fact its just about as possible that it increased those things

2 - In direct terms its reasonable (but not certain) that a longer time between crashes (assuming the longer time doesn't result in a more severe crash) would help increase growth, but the actual methods to reduce the time between crashes can often reduce growth.