Duh, the Glass Steagall Act of 1933 was good legislation and the Financial Modernization Act repealed it. I guess Clinton was too busy staining a fat girl’s blue dress to real the bill…
Knowing all this, has Congress changed the regulations regarding these risky financial transactions to bring them back into a pre-Clinton era compliance…afraid not.
I could see how one would make that connection, but “too big to fail” really just means the institution is too interconnected to fail without a cascading affect on other institutions. Also keep in mind these consolidated institutions wouldn’t have existed under Banking Act of 1933 laws, that were repealed by Clinton. Funny how a dem repealed legislation signed into law by a dem (FDR), under pressure from GOP. And those laws created an environment where Carter’s Community Reinvestment Act combined with Greenspan’s low interest rates (intended to help the economy recover from the “tech bubble”) caused a “credit bubble”.
So, in closing, this is not just a dem or gop thing, it was decades of poor choices that led us into financial oblivion. And to answer your original question; monopoly? Kind of, but more importantly, any institution that is “too big to fail”, in my opinion, is too interconnected to EXIST. Break them up into smaller, more manageable institutions and regulate their activities. That way we don’t have to use public funds to bail out, or protect the public.
One more thing, Barrack W O’Carter should have used TARP funds in a more productive manner. This is a book in itself, but I’ll keep it short. This money should NOT be “loaned” to institutions at zero percent interest only to be used to buy treasuries. This is like borrowing OUR money (for free) then charging US interest to lend it back to us! RIDICULOUS! They should have been forced to lend this money to the private sector. Period.
Ok, thanks for reading, I have to get off my soap-box and back to work :)
Gee – a Dem signed a republican sponsored bill reducing regulation and it came back to bite this whole nation – big time! Does this all sound a little too familiar now too!!
I contend that if they had not had the assett of insurance premiums they would not have been lulled into taking the hazards to the levels of risk they tried. Why were they able to, and what allowed them to make the decisions they did? Attorneys and Accountants who enjoy the benefit of billable hours without having to balance those hours with equitable production.
What I find most pathetic about this is that nobody has gone to jail. Greenspan, Summers, Rubin….all should be in jail for silencing Brooksley Born when she was screaming REGULATE THESE SWAPS.
Sadly the same behavior is and has been going on. Despite what the media says, we are still in a recession and things are only going to get worse. I hate to be a doom and gloomer but there’s not much to be positive about with regards to our government and economy. I have a feeling the next month is going to get real ugly. Reinstate Glass Steagall and get the damn CFTC and SEC to do their jobs already instead of fattening the pockets of wall street at the expense of main street. I don’t know about you all but I don’t like the idea of paying $4+ for gas, which is just around the corner along with skyrocketing food costs. But according to the fed, there is no inflation b/c food and fuel are non-essential items. LOL.
Sorry about the rant. I just despise big govt, AIG, Goldman and wall street in general.
Duh, the Glass Steagall Act of 1933 was good legislation and the Financial Modernization Act repealed it. I guess Clinton was too busy staining a fat girl’s blue dress to real the bill…
Knowing all this, has Congress changed the regulations regarding these risky financial transactions to bring them back into a pre-Clinton era compliance…afraid not.
When any company gets “too big to fail”, are they not effectivly a monopoly?
I could see how one would make that connection, but “too big to fail” really just means the institution is too interconnected to fail without a cascading affect on other institutions. Also keep in mind these consolidated institutions wouldn’t have existed under Banking Act of 1933 laws, that were repealed by Clinton. Funny how a dem repealed legislation signed into law by a dem (FDR), under pressure from GOP. And those laws created an environment where Carter’s Community Reinvestment Act combined with Greenspan’s low interest rates (intended to help the economy recover from the “tech bubble”) caused a “credit bubble”.
So, in closing, this is not just a dem or gop thing, it was decades of poor choices that led us into financial oblivion. And to answer your original question; monopoly? Kind of, but more importantly, any institution that is “too big to fail”, in my opinion, is too interconnected to EXIST. Break them up into smaller, more manageable institutions and regulate their activities. That way we don’t have to use public funds to bail out, or protect the public.
One more thing, Barrack W O’Carter should have used TARP funds in a more productive manner. This is a book in itself, but I’ll keep it short. This money should NOT be “loaned” to institutions at zero percent interest only to be used to buy treasuries. This is like borrowing OUR money (for free) then charging US interest to lend it back to us! RIDICULOUS! They should have been forced to lend this money to the private sector. Period.
Ok, thanks for reading, I have to get off my soap-box and back to work :)
Gee – a Dem signed a republican sponsored bill reducing regulation and it came back to bite this whole nation – big time! Does this all sound a little too familiar now too!!
I contend that if they had not had the assett of insurance premiums they would not have been lulled into taking the hazards to the levels of risk they tried. Why were they able to, and what allowed them to make the decisions they did? Attorneys and Accountants who enjoy the benefit of billable hours without having to balance those hours with equitable production.
What I find most pathetic about this is that nobody has gone to jail. Greenspan, Summers, Rubin….all should be in jail for silencing Brooksley Born when she was screaming REGULATE THESE SWAPS.
Sadly the same behavior is and has been going on. Despite what the media says, we are still in a recession and things are only going to get worse. I hate to be a doom and gloomer but there’s not much to be positive about with regards to our government and economy. I have a feeling the next month is going to get real ugly. Reinstate Glass Steagall and get the damn CFTC and SEC to do their jobs already instead of fattening the pockets of wall street at the expense of main street. I don’t know about you all but I don’t like the idea of paying $4+ for gas, which is just around the corner along with skyrocketing food costs. But according to the fed, there is no inflation b/c food and fuel are non-essential items. LOL.
Sorry about the rant. I just despise big govt, AIG, Goldman and wall street in general.
RON PAUL 2012
Regulation or not, AIG is responsible for their behavior. US should not have bailed them or anyone else out. No one is ever too big to fail.
The key word here is Goldman Sachs – This organization is controlling our financial system, politics and monetary policy to help the super rich.