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Would reinstating the Glass-Steagall act fix a lot of our banking problems?
The Glass-Steagall Act basically separated commercial banks from investment banks and made them separate entities. It kept the banks from getting "too big to fail" so in 1999 when it was repealed allowed banks to not only take your money but then write securities with it and leverage your money to the point of insolvency. This allowed the banks to get too big to fail.
Kinda caused all this problem that we are in today.
Nothingconstant... your right it was implemented after the great depression so the banking system wouldn't get to big to collapse and it worked just fine until it was repealed. 8 years afterwards look where we are at...
Gotcha!!! and I did misinterpret what you said...
6 Answers
- RoddersLv 61 decade agoFavorite Answer
There were provisions attached to the repeal of "Glass-Steagall" that were to prevent what has happened. The US Congress took an Active Role in thwarting the use of those provisions! Law firms, Lobbyists, "Non Profit" groups, and Maliciously Irresponsible Judges, all of whom put Party Loyalty ahead of their Sworn Duty to the Country, Gladly assisted in this Feast of Thieves.
If you are serious about fixing the banks and our economy, then the US Congress must be Lawfully purged of the poison that is the Current Membership! They must be brought to justice before it is too late. We have at the most, only thirty six days to go; after that I can't see any peaceful remedy .
On the last sentence of the second paragraph, I hope that I will be proven wrong. And yet I truly believe it will be as I fear.
- The WiseLv 41 decade ago
It's too late. Certainly if it had never been repealed this wouldn't have happened or the effects of the mortgage meltdown wouldn't have been so wide spread.
It will perhaps help in the future but just reinstating it wouldn't solve the immediate problems.
- Anonymous1 decade ago
It appears so. Coupled with positive Citi earnings, the mere mention of it's reinstatement had the markets soaring it.
Steve Forbes, Kudlow & all his economic cronies have been saying a few things over & over - uptick rule, mark to market...do these & the Dow will rebound. Barry's supposed to be listening to experts. I wish he'd listen to these guys, not tax cheats from the WTO.
- ?Lv 45 years ago
It is the starting point . The rest of the safe guards put in place after the 29 crash , would be the complete correction of the market to sound ethical accountability
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- nothingconstantLv 71 decade ago
It was developed after the Great Depression mess....
If we reinstated it, that's just blatant 'history repeating itself'.
Will we ever learn?
That's my point.
I think you misinterpreted my answer.
If we keep having to do the same regulating over and over only for it to be repealed, will we ever learn?
In other words,
It shouldn't have been repealed in the first place.
- CroakerLv 61 decade ago
it might....that is the start of many of the problems that we have today.
i doubt many know of what you speak on.
