Bring Back Glass-Steagall?

[Annie]

I don't know enough about economy or Wall Street to address this, but thought it interesting:

http://edcone.typepad.com/wordup/2008/03/rethinking-re-1.html

 

[midcan5]

"Can you direct me to the railway station?" asks the stranger. "Certainly," says the local, pointing in the opposite direction, towards the post office, "and would you post this letter for me on your way?" "Certainly," says the stranger, resolving to open it to see if it contains anything worth stealing." Amartya Sen

Deregulation, another right wing swan song, there are so many, one wonders how conservatives sleep.

 

[Paulie]

"Can you direct me to the railway station?" asks the stranger. "Certainly," says the local, pointing in the opposite direction, towards the post office, "and would you post this letter for me on your way?" "Certainly," says the stranger, resolving to open it to see if it contains anything worth stealing." Amartya Sen

Deregulation, another right wing swan song, there are so many, one wonders how conservatives sleep.

I notice you posting a lot of quotes from what seem to be your favorite fables lately.

Is there supposed to be some kind of economic significance to these, particularly THIS one?

 

[midcan5]

I notice you posting a lot of quotes from what seem to be your favorite fables lately.

Is there supposed to be some kind of economic significance to these, particularly THIS one?

Of course. Is it not obvious that in economics we have to deal with people and people are capable of all sorts of things, even good people. So the bromide that 'regulation is bad' is really a bad idea. PS I love quotations, many years ago people would send them to me to be included in a program I wrote. More you will dislike:

"Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone." John Maynard Keynes

"The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness." John Kenneth Galbraith

"The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries." Winston Churchill

"Under capitalism, man exploits man. Under communism, it's just the opposite." John Kenneth Galbraith

 

[BaronVonBigmeat]

The problem is, you can't partially deregulate. We took away Glass-Steagall, but we still have a system where banks are still backed and protected by the government if they do something stupid.

It's like telling your teenage son over and over to drive safe and don't do anything stupid. But by the way, here's the keys to a Dodge Viper, with full coverage insurance paid for. Also, here's a case of whiskey, now go have fun at the beach.

You either set strict rules for your son and enforce them, or you take a hands-off approach but let him work and buy his own car, so he takes care of it.

 

[midcan5]

The problem is, you can't partially deregulate.

I don't think you can at all. Too many crooks and liars to ever think deregulation is the answer. If you could create the 'honest woman' then I would agree. No offense meant to women.

 

[Truthmatters]

I agree it was the Grahm ,leach Blilely act passed in Oct 1999 that opened up the doior to this problem. If the admin had acted a couple of years ago to shiore this up we would be much better off right now. The Bush admin made it so the states could not correct it in their own govs.

This was allowed to happen.