British Analyst: U.S. Glass-Steagall Would Have Immediate Worldwide Impact

Discussion in 'Media' started by hvactec, Oct 26, 2011.

  1. hvactec
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    hvactec VIP Member

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    October 26, 2011 • 9:42AM

    The restoration of Glass-Steagall in the United States would have an immediate world-wide impact, because the U.S. Federal Reserve — meaning, actually, U.S. taxpayers — is now the only source of last resort for the huge bailouts being demanded by the world's bankrupt speculative banks, a City of London analyst told EIR today. Restoring Glass-Steagall standards in the United States, would cut off that source, and leave investment banks stranded, not only in the U.S., but also in the EU and UK, whether or not those countries had their own Glass-Steagall standards.

    As the ongoing antics in continental Europe show, the EU cannot pull together the funds to bail out Greece, to say nothing of Italy, France, or the UK. In Britain, the decision to carry out the ring-fencing policy, actually means that the government can deny bailouts to the bankrupt investment arms of major banks, while supporting the essential high street banks [retail sector banks-ed.], he said. Ring- fencing has no power to alter the way banks behave, but it would let the U.K. government opt out and abandon the investment bankers to their fate.

    The analyst also said that the strong political opposition to EU membership in Britain is very real, and growing

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  2. PeteEU
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    PeteEU VIP Member

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    I agree.. in fact I would go one further and nationalise the investment banks and sell off their assets. They are simply too big and too powerful. They single-handed brought down the world economy and made a profit from it and still are making a profit.

    Considering that the investment banks hold a huge portion of sovereign CDS, then I seriously suspect they are behind the drive to make certain sovereign's default and behind the whole overblown so called "European debt problem".
     

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