Neotrotsky
Council to Supreme Soviet
Blaming the repeal of Glass/ Steagall is popular with the left crowd
It is nothing more than a "red herring" that appeals to those who desire
more gov't regulation and provides cover for the bad housing regulations
that the gov't made...
If Glass-Steagall's repeal had contributed to this crisis, we should see the failures aggregate among large banks
where speculation put deposits at risk.
The Act had nothing to do with lending standards at commercial banks, or leverage ratios at broker-dealers.
Instead we see the opposite - failures among commercial banks with no significant investment arm eg Countrywide
Bad government regulation caused the housing bubble
and the ensuing financial crisis
It was government meddling in the private sector
that created the housing bubble and financial crisis.
It is nothing more than a "red herring" that appeals to those who desire
more gov't regulation and provides cover for the bad housing regulations
that the gov't made...
If Glass-Steagall's repeal had contributed to this crisis, we should see the failures aggregate among large banks
where speculation put deposits at risk.
The Act had nothing to do with lending standards at commercial banks, or leverage ratios at broker-dealers.
Instead we see the opposite - failures among commercial banks with no significant investment arm eg Countrywide
Bad government regulation caused the housing bubble
and the ensuing financial crisis
It was government meddling in the private sector
that created the housing bubble and financial crisis.
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