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To: Albion Wilde

Here’s the problem with Glass-Steagall: it was a lie. It was perpetrated on the assumption that banks in the 1920s fed the stock market increase with deposits, which weakened them.

That’s completely wrong. Research by an acquaintance of mine, Eugene White of Rutgers, has shown that banks were LESS likely to fail if they had securities brokerages because they could diversify their assets. Banks MORE likely to fail were the ones not attached to brokerages. Like anything in investing, more diversity, less risk.

So Trump or not, I don’t like doing anything based on a false premise, and the Glass-Steagall was false.

If there are new, different concerns with banks and their investing, that should be the subject of new law, not a dusted off Great Depression law that was done out of Democrat rage.


14 posted on 05/02/2017 7:25:14 PM PDT by LS ("Castles Made of Sand, Fall in the Sea . . . Eventually" (Hendrix))
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To: LS
Economics and regulation thereof are not my forte. But I did want to make sure you saw the next installment of that valuable Sundance series; hence, le ping.
15 posted on 05/02/2017 8:23:20 PM PDT by Albion Wilde ("We will be one people, under one God, saluting one American flag." --Donald Trump)
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