Quote:
Originally Posted by CDusr
Repealing GS was a small part of all the market changes that occurred. There were actually an enormous amount that occurred under Clinton Admin. This allowed the off-shoring and leveraging on a massive scale.
Quite the laundry list.
Essentially a little over 1300 TNCs control 80%... |
I agree, the final repeal of GS was 'icing on the cake.' One of the biggest problems in the present day, imho, is the systemic risks involved. & the obtuse bipartisan bickering amounts to ‘fiddling while Rome is burning'. Refusing to acknowledge the still existent, & now global, systemic risks is a problem (bigtime).
These things, including attempts to repeal GS, have been going on since GS was first enacted after the Great Depression in the 1930s. Here's the timeline highlighting just some of the circumstances:
1970s - Banks were too small to create mega profits for themselves.
1980s - Serious deregulation of banks began. This was in accordance to the ubiquitous ‘Trickledown’ Philosophy/Creed of the decade. In addition, deregulation introduced the concept of ‘moral hazard’ to the lexicon thereby enabling the S&Ls to create mega profits (for themselves). Criminal prosecutions resulted for the more flagrant abuses.
•The Garn-St Germain Depository Institutions Act of 1982 enacted.
•November, 1988 - George Bush elected President. S&L problem not part of election debate.
1989 - President Bush introduces S&L bailout plan in February:
• Savings & Loan Crisis #1 the largest taxpayer bailout of banks ever (including being larger than the most recent bailout).
1990s - Even though deregulating banks was a prime factor in the S&L Crisis, the FIRE sector convinces (cons) everyone, including Democrats, Republicans & basically all American people that even more deregulation was required. Various ‘making offers no one seemed able to refuse.’
•The Savings and Loan crisis of the 1980s saw more than 1,000 S&Ls collapse, costing the U.S. government more than $100 billion.
1999 The Gramm–Leach–Bliley Act (GLB), also known as the Financial Services Modernization Act of 1999 effectively repeals Glass Steagall (put into place after investigation & analysis of factors leading to Great Depression of 1930s)
•The Commodity Futures Modernization Act - The law that empowered the (still unregulated) derivatives market & paved the way for banks to become more aggressive about investing in mortgages. Oddly, folks still speak about excessive regulation.
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The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that clarified most over-the-counter derivatives (“OTC derivatives”) transactions between “sophisticated parties” would not be regulated as “futures” under the Commodity Exchange Act (CEA) or as “securities” under the federal securities laws. Instead, the major dealers of those products (banks and securities firms) would continue to have their dealings in OTC derivatives supervised by their federal regulators under general “safety and soundness” standards. “Functional regulation” of derivatives products by the Commodity Futures Trading Commission (CFTC) was rejected for continued “entity-based supervision of OTC derivatives dealers.”[1] Section 2(g) of the CEA is also sometimes called the “Enron Loophole”.
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2000s - Banks (by the marriage of various components of the FIRE sector) again become too big to fail, too big to manage risk, too big to bailout. All in all = systemic risks galore.
Conversely, banks have also became too international to allow to fail (that is, because many of the ‘too big sort’ are now Global, that is, all of the International player Countries would have to be able to agree to the conditions of ‘allowing to fail’ = not bloody likely).
2008 up to present – Well, you folks know what happened in more recent times, right?
& Present Day Banks are still too big.
Too big to care in addition to still being too big:
• To fail
• To manage risk
• To bailout
• Too allow to fail
Apparently, in the present day, there’s a good proportion of American People who are still:
• Too much in denial
• Too entranced/entertained by the bipartisan bickering to give a flying ...
• Too addicted to playing the ‘victim card’ to do much of anything else (except to perhaps whine).
• Blaming small, mid, or especially Big government to do much of anything else (except for bending over to the FIRE sector).
Because they are too big to ‘bully’ they are too big to care or give a flying ... what anyone says:
The song remains the same,
‘Don’t rock the boat but dammit keep on bailing.’
= no reforms to address the systemic risks, especially in the FIRE sector.
Although ‘Trickledown Economics’ Philosophy/Creed is in its 2nd phase: ‘Golden Showers Economics.’
• Continue Corporatism full force
• Continue to offshore jobs as much as possible to save in labor costs, for benevolent tax treatment, etc.
• Dismantle Labor Unions
• Continue to market privatizing as much as possible to continue corporatism in full force.
• Rinse & repeat
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