glass-steagall ressurection may be up for a vote

• derek bomar

  

  http://www.newsweek.com/id/226938
  
  i like
• derek bomar

  

  ccrunner609 wrote: You like the government sticking its noses into everything?

  why do you think commercial and investment banks should be merged into one business? I don't see how you can think this is a good idea...but I'm more than willing to hear why you think it is.
• gut

  I'm a big believer in capitalism, DB, but I might even go a step further: Financial services firms shouldn't be publicly traded. It creates incentive issues that skew the risk/reward ratio. No question when Goldman and other firms were private that they paid more attention to risk because the partners had large chunks of their personal fortunes on the line.
  
  I know that smacks in the face of free markets, but there is no question it is easier to take risky bets with other people's money. Now before people respond with "but free markets adjust for that", realize the bulk of capital being traded in the markets is controlled by big money managers who are, again, chasing returns with other people's money.
  
  And maybe the biggest problem I don't think this would address is leverage, which is at the root of all the problems. You can try to change the rules of how firms raise capital, but I think it's foolish to assume large amounts won't be raised in other ways, creating the same situation because it's not $XXX amount of capital that's the issue so much as $XXX leveraged into multiples more.
• derek bomar

  

  Still waiting CC...
• rocketalum

  I think it's great that this is back up for consideration. Had this not been repelled all those "too big to fail" corporations wouldn't have existed and Bush Jr wouldn't have started the ball rolling on our current spending frenzy. Mind you, a ball that Obama has picked up and ran with like he's the Barry Sanders of fiscal irresponsibility.
• derek bomar

  

  stilllllll waiting CC
• Con_Alma

  What makes you think CC thinks they should be merged??
  
  Permitting them to merge and thinking they should be merged are not they same thing are they? Do you believe he thinks they should be merged?
• derek bomar

  

  Con_Alma wrote: What makes you think CC thinks they should be merged??
  
  Permitting them to merge and thinking they should be merged are not they same thing are they? Do you believe he thinks they should be merged?

  I believe he's just trying to start shit and he really has no idea wtf he's talking about
• Con_Alma

  That could be.
• alwaysafan

  Once again, the government moves to MORE regulation, ugh. I find it comical that people point to the financial crisis as the failure of free markets. The truth is, it is the exact opposite.
  
  What were the root causes of the crisis? Loose money, which was exacerbated by increasing complexity of financial markets and a general misunderstanding/not caring for risk.
  
  What is the cause of loose money? THE FED. Keeping interest rates way too low. Not to mention the stupid government programs to essentially force banks and financial institutions to lend to those who otherwise would not receive funds. The only single benefit I see to government intervention are movements towards more transparency, such as CDS exchanges.
  
  Politicians are twisted sons of bitches. Let's stick to building roads, protecting private property, and maintaining on a non-interventionist military.
• I Wear Pants

  alwaysafan wrote: Once again, the government moves to MORE regulation, ugh. I find it comical that people point to the financial crisis as the failure of free markets. The truth is, it is the exact opposite.
  
  What were the root causes of the crisis? Loose money, which was exacerbated by increasing complexity of financial markets and a general misunderstanding/not caring for risk.
  
  What is the cause of loose money? THE FED. Keeping interest rates way too low. Not to mention the stupid government programs to essentially force banks and financial institutions to lend to those who otherwise would not receive funds. The only single benefit I see to government intervention are movements towards more transparency, such as CDS exchanges.
  
  Politicians are twisted sons of bitches. Let's stick to building roads, protecting private property, and maintaining on a non-interventionist military.

  I'm wondering where your level of trust in corporations and their executives comes from. At least we have the power to remove politicians.
• alwaysafan

  I Wear Pants wrote:

  alwaysafan wrote: Once again, the government moves to MORE regulation, ugh. I find it comical that people point to the financial crisis as the failure of free markets. The truth is, it is the exact opposite.
  
  What were the root causes of the crisis? Loose money, which was exacerbated by increasing complexity of financial markets and a general misunderstanding/not caring for risk.
  
  What is the cause of loose money? THE FED. Keeping interest rates way too low. Not to mention the stupid government programs to essentially force banks and financial institutions to lend to those who otherwise would not receive funds. The only single benefit I see to government intervention are movements towards more transparency, such as CDS exchanges.
  
  Politicians are twisted sons of bitches. Let's stick to building roads, protecting private property, and maintaining on a non-interventionist military.

  I'm wondering where your level of trust in corporations and their executives comes from. At least we have the power to remove politicians.

  It is not about trust--it is about what is right. Just because someone is an idiot and runs a business into the ground does not mean I have the right to tell him what to do. And anyways, saying politicians know how to run a business better than the business-owners who have money and reputation at stake is laughable. Politicans never lose when it comes to pandering on the "f the corporation" line.
• Footwedge

  alwaysafan wrote: Once again, the government moves to MORE regulation, ugh. I find it comical that people point to the financial crisis as the failure of free markets. The truth is, it is the exact opposite.
  
  What were the root causes of the crisis? Loose money, which was exacerbated by increasing complexity of financial markets and a general misunderstanding/not caring for risk.
  
  What is the cause of loose money? THE FED. Keeping interest rates way too low. Not to mention the stupid government programs to essentially force banks and financial institutions to lend to those who otherwise would not receive funds. The only single benefit I see to government intervention are movements towards more transparency, such as CDS exchanges.
  
  Politicians are twisted sons of bitches. Let's stick to building roads, protecting private property, and maintaining on a non-interventionist military.

  Glass Steagle was passed in the 1930's....partially to protect against another economic bubble that popped (Great Depression).
  
  In 1999, The Gramm, Leach Bliley undid G/S....and then "casino capitalism" brought the worldwide economy to a grinding screetch.
  
  Thanks to the FED, the dems in congress, and president Bush, the banking oligopic cartel was able to hoodwink future taxpayers to the tune of 700 billion dollars.
  
  Isn't corporate capitalist welfare grand?
  
  I suppose you are against any and all Anti trust legislation, eh?
  
  It's a shame that politicians have to play policeman on Wall Street. But Wall Street has proven that they cannot police themselves.