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It took more than 25 years of chipping away at the common sense regulations of the Glass-Steagall Act. Its final demise came with the passage of the Gramm-Leach-Bliley Act in 1999. Like President Reagan before them, most Congress folks thought financial deregulation would be 'like hitting the jackpot'. Instead, President Reagan ushered in the S&L scandals & crisis of the 1980s with the mania for financial deregulation. & the push for yet more financial deregulation in 1999 (the final demise of the GSA) came along with the mergers of banking & investment & toxic financial 'products':
10 Years Later, Looking at Repeal of Glass-Steagall
Some folks were so sure, they went ahead & began the mergers before Gramm-Leach-Biley Act passed (Citibank for one).
The 'Masters of the Universe' schtick got re-framed by Mr. Blankfein of Goldman Sach's as bankers just "doing God’s work” during the recent global financial imbroglios.
This is the thing, whether they think of themselves as 'Masters of the Universe', or just bankers "doing God's work, they still have their lobbyists lawyers & libertarian legislative lapdogs cheerleading for them.
For the record, I wasn't claiming Glass Steagall repeal did not make a difference particularly for commercial banks like Citibank. However, the investment banks involved in securitization, like Bear Stearns and Lehman Brothers, didn't require Glass Steagall to be repealed.
So Janet Yellen, BO's pick to head the Fed in 2014, has masterfully and intelligently led the Fed during turbulent economic times, and as a result we are now enjoying low interest rates, a strong economy, steady job growth and the lowest unemployment in 17 years. Normally that would be good enough to keep your job right?
But NOOOOO, the petty little Dotard in Chief, goes and picks a NON economist to a job that arguably requires someone who is well versed in economics and the intricacies of economic policy and strategy. Why you might ask? - because Yellen was an Obama appointee and he would rather put our economy in peril than let a brilliant and experienced economist continue to guide our economy.
Good luck during the next economic downturn, recession, or economic calamity Dotard!
The economy never recovered. We are not in a strong economy.
Yellen is an imbecile who never saw the biggest collapse since the Great Depression coming.
Food stamp usage is 50 percent higher than it was in 2007 before the collapse while population grew by only 8 percent.
For the first time ever a majority of school aged children are on free or assisted lunches. Yea nothing says a booming, vibrant economy like welfare.
It took more than 25 years of chipping away at the common sense regulations of the Glass-Steagall Act. Its final demise came with the passage of the Gramm-Leach-Bliley Act in 1999. Like President Reagan before them, most Congress folks thought financial deregulation would be 'like hitting the jackpot'. Instead, President Reagan ushered in the S&L scandals & crisis of the 1980s with the mania for financial deregulation. & the push for yet more financial deregulation in 1999 (the final demise of the GSA) came along with the mergers of banking & investment & toxic financial 'products':
10 Years Later, Looking at Repeal of Glass-Steagall
Some folks were so sure, they went ahead & began the mergers before Gramm-Leach-Biley Act passed (Citibank for one).
The 'Masters of the Universe' schtick got re-framed by Mr. Blankfein of Goldman Sach's as bankers just "doing God’s work” during the recent global financial imbroglios.
This is the thing, whether they think of themselves as 'Masters of the Universe', or just bankers "doing God's work, they still have their lobbyists lawyers & libertarian legislative lapdogs cheerleading for them.
Deregulation had nothing to do with either collapse.
The partial repeal of Glass- Steagall really? Guess who didn't combine investment with commerical banking and failed? Bear Stearns, Lehman Brothers and Merrill Lynch, all investment banks. The same goes for Goldman Sachs, it didn't combine the two. AIG? An insurance firm. New Century Financial? A real estate investment trust. No Glass-Steagall there. Wachovia and Washington Mutual, got into trouble by making risky loans to homeowners. Same with Countrywide Financial, a mortgage lender.
Regulations pertaining to S&Ls? Really? They went into affect on April 1, 1980 and October 1 1982. How in the world did those regulation cause the net worth of S&Ls too be -17 billion with 85% of S&Ls losing money in 1980? S&Ls were already dead. That's what happens when in 1980 the book value is 32 billion while the market value is -120 billion.
The lending industry as a whole never failed when it was left to their own regulations. They made a ton of money through conservative lending standards. But hey lets lower standards because everyone deserves a house right?
So Janet Yellen, BO's pick to head the Fed in 2014, has masterfully and intelligently led the Fed during turbulent economic times, and as a result we are now enjoying low interest rates, a strong economy, steady job growth and the lowest unemployment in 17 years. Normally that would be good enough to keep your job right?
But NOOOOO, the petty little Dotard in Chief, goes and picks a NON economist to a job that arguably requires someone who is well versed in economics and the intricacies of economic policy and strategy. Why you might ask? - because Yellen was an Obama appointee and he would rather put our economy in peril than let a brilliant and experienced economist continue to guide our economy.
Good luck during the next economic downturn, recession, or economic calamity Dotard!
Ol Yeller has done nothing except to keep interest rates at a ridiculously low level that has costs lost $millions for savers and retirees in this economy. Good Riddance.
Great pick for the new fed chair, but the Trump haters wont like anything he does or picks... thats ok i understand, the snowflakes need to go back to their safe space and whine in peace
For the record, I wasn't claiming Glass Steagall repeal did not make a difference particularly for commercial banks like Citibank. However, the investment banks involved in securitization, like Bear Stearns and Lehman Brothers, didn't require Glass Steagall to be repealed.
I get what you're saying & appreciate your clarification, thanks & respect.
What I was attempting (albeit feebly) to get at is clarified here:
Quote:
...The separation of commercial and investment banking prevented securities firms and investment banks from taking deposits, and commercial Federal Reserve member banks from:
dealing in non-governmental securities for customers,
investing in non-investment grade securities for themselves,
underwriting or distributing non-governmental securities,
affiliating (or sharing employees) with companies involved in such activities.
Starting in the early 1960s, federal banking regulators' interpretations of the Act permitted commercial banks, and especially commercial bank affiliates, to engage in an expanding list and volume of securities activities.[3] Congressional efforts to "repeal the Glass–Steagall Act", referring to those four provisions (and then usually to only the two provisions that restricted affiliations between commercial banks and securities firms),[4] culminated in the 1999 Gramm–Leach–Bliley Act (GLBA), which repealed the two provisions restricting affiliations between banks and securities firms.[5] ...
Additionally, the basic 'gist' here (& applicable elsewhere as well) is systems are often interconnected &/or interrelated, i.e. the FIRE sector is comprised of Financial industry interests, Insurance industry interests, & Real Estate industry interests.
The interests of all of the above are often interconnected & interrelated, not to mention global in scope.
The essential 'gist' here is people's short-term self interests are often at odds with long-term group interests & the common good. Some of the natural consequences are increases in systemic risks, economic moral hazards, adverse selection, & control fraud ... . Fraud matters, conflicts of interest matter, ... & so on.
The economy never recovered. We are not in a strong economy.
Yellen is an imbecile who never saw the biggest collapse since the Great Depression coming.
Food stamp usage is 50 percent higher than it was in 2007 before the collapse while population grew by only 8 percent.
For the first time ever a majority of school aged children are on free or assisted lunches. Yea nothing says a booming, vibrant economy like welfare.
Trump isn't the asinine one here.
Ironic you bring up 'food stamps' when an analysis by the Government Accountability Institute uncovered a clear trend of increasing contributions to Agriculture Committee members of both the House & Senate on the part of JPMorgan that appears to coincide with their entry into the EBT market. This is a clip from the Executive Summary of a paper entitled, Profits from Poverty: How Food Stamps Benefit Corporations:
Quote:
Originally conceived as a means to prop up sagging crop prices to support American farmers, the Food Stamp Program, now called the Supplemental Nutrition Assistance Program, or SNAP, has exploded into a welfare program that costs tax payers a record $75.67 billion in 2011.1 Almost everyone has heard this story, but few realize that only three corporations have cornered the market for providing SNAP services to the needy and destitute. According to JP Morgan, the largest food stamp industry player, the business of food stamps “is a very important business to JP Morgan. It’s an important business in terms of its size and scale.... Right now volumes have gone through the roof in the past couple of years or so. The good news from JP Morgan’s perspective is the infrastructure that we built has been able to cope with that increase in volume.”2 And JP Morgan has good reason to be pleased, since the bank profits from programs designed to help the poor.
Profits from Poverty: How Food Stamps Benefit Corporations
This relatively short paper begins with a quote from 1787:
"Perhaps the greatest, if not the only difficulty, which will arise against the adoption of this New Federal System of Government, will be made by those ambitious citizens, in the different States, who either now are in power, or who will practice their political wiles on the ignorant and unsuspicious part of the people, in order to obtain their own private purposes. It is a lamentable consideration, that men of this stamp too frequently, by the folly and blindness of the people, are put in the exercise of such offices as give them a very dangerous degree of influence – Hence the social compact is often violated, and sometimes dissolved."
Ol Yeller has done nothing except to keep interest rates at a ridiculously low level that has costs lost $millions for savers and retirees in this economy. Good Riddance.
There is a debate whether interest rates should be raised at this point. We will see what the new chair proposes, just increasing rates at this point could do more damage than good.
The economy never recovered. We are not in a strong economy.
Yellen is an imbecile who never saw the biggest collapse since the Great Depression coming.
Food stamp usage is 50 percent higher than it was in 2007 before the collapse while population grew by only 8 percent.
For the first time ever a majority of school aged children are on free or assisted lunches. Yea nothing says a booming, vibrant economy like welfare.
Trump isn't the asinine one here.
^^^^^^Truth! You've obviously have had some Econ, and Finance, and realize the Stock Markets are NOT a good barometer of the economy. We are still in a tenuous, hollow economy. Corporate tax cuts may help to address that. Continuously LOW interest rates are not a positive sign of a vibrant economy.
I didn't complain when Obama replaced the Bush people. Because I understand that's what happens.
As far as Trump "uprooting" things related to the Obama Administration, I seem to remember that very Obama campaigning on his promise to uproot everything going back to Reagan.
Funny how that was OK then but now isn't to be expected. One reason Trump was elected, whether you like it or not, was the promise to roll back Obama programs.
As a note, the President, any President, can replace a Presidential appointment for any reason or even no reason.
Please provide quotes when Obama said he wanted to uproot everything going back to Reagan.
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