Posted on 07/09/2015 8:44:23 PM PDT by 2ndDivisionVet
Sens. Elizabeth Warren (D-Mass.) and John McCain (R-Ariz.) are reintroducing legislation to revive the Glass-Steagall Act, which would force big banks to split their investment and commercial banking practices.
Glass-Steagall was first passed in 1933 but repealed during the Clinton administration, leading many progressives to argue that it contributed to the 2008 financial collapse.
Warren and McCain, along with their cosponsors, Sens. Angus King (I-Maine) and Maria Cantwell (D-Wash.), said in a statement that the legislation would make big banks that are "too big to fail" smaller and safer and minimize the likelihood of a government bailout....
(Excerpt) Read more at thehill.com ...
Well, I’ll be darned!
Might be the only thing I could back McCain on...Glass-Steagall. It will stop the banks from gambling on derivatives with my savings account. The too big to fail banks have no risk, if the gamble fails, the tax payers bail them out.
This is exactly what happened in 2008-2009.
The 2008 housing collapse was caused by LIBERAL politicians who forced banks to give out loans to people who had no job, assets, or money to pay them back.
It’s about damn time! What do you want to bet it go’s down by one vote?
my guess: theater
Problems caused by the federal gov't forcing banks to make mortgage loans without regard to ability to repay (because to do otherwise would be "racist.")
Then supposedly as a offset, the mortgage-backed security business arose to spread the risk, along with more exotic financial instruments.
But no matter how it was spread out, it was still junk, and crashed.
So don't blame repeal of Glass-Steagall; it was social engineering that caused the crash.
Might be the only thing I could back McCain on...Glass-Steagall. It will stop the banks from gambling on derivatives with my savings account. The too big to fail banks have no risk, if the gamble fails, the tax payers bail them out.
This is exactly what happened in 2008-2009.
To put it in shorter terms,Privitize Profits-Socialize Loses!!
Tomorrow The Constitution!
The banks bundled all those sub-prime mortgages into tranches of AAA rated bonds. And on top of that sold derivatives to further leverage the bonds. The house cards came tumbling down when many sub-prime borrowers could not make monthly mortgage payments.
George Bush was one of those politicians who pushed loans for poor people who couldn’t pass normal credit checks.
“The 2008 housing collapse was caused by LIBERAL politicians who forced banks to give out loans to people who had no job, assets, or money to pay them back.”
I can agree with that. Here in Phoenix they were giving loans to illegal aliens to buy houses. When they couldn’t pay they dumped the houses and walked away. No credit ratings to wreck, they were not U.S. Citizens.
Not McCain again...
Following the European Union’s adoption of the euro, the ECB (European Central Bank) kept its interest rates at 2 percent to help reunified Germany. Money poured into Britain and America, distorting money markets.The social marketeers of Europe like to put the blame solely on the US and Britain, though, even going so far as to use racially-charged terms for the free market (“the Anglo-Saxon capitalist model” is one of the ones used most often during the 2008 crisis), even though the liberals here have abandoned that for the most part.
After December 2005, the ECB inched up interest rates seven times.
In January 2007, Germany raised VAT by 3 percent and the German unions asked for increased wages in compensation. German Bundesbank President Axel Weber sought and secured another ECB interest rate rise to curb German wage inflation. Higher interest rates then caused funds to sweep back to Europe, and soon the US and UK financial systems began to crack.
After a further ECB interest rate rise in July 2008, stock markets around the world collapsed. …
You are thinking exactly my thoughts. Clinton was working for a ring of thieves.
Not only that, we need to bring back double-liability to banks and investment houses, as in the 19th century.
If a bank made unwise or risky choices, not only were the shareholders in the bank wiped out, they also were liable to still pay their debts after bankruptcy.
Our present system is the worst and encourages not only corruption but leftist-progressive social engineering. The bankers can basically play for free and create all the debt they want as they implicit have the FED and the US Government behind them.
If we can’t get rid of the Federal Reserve, then at least make the banks and bankers highly responsible.
It may have made a bad situation worse, but they still need to deal with the main cause which was the CRA that Clinton put on steroids.
The now infamous “liar loans”. Houses were being built with no intent of being sold. Every street corner had signs of easy credit, houses for sale and new developments. Sure, loan money to anyone with a pulse. What could possibly go wrong?
Me too.
But it was good law.
Knowing this crew though they'll add a bunch of commie stuff to the original.
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