Political Crossfire Forums

Here is one undeniable fact the Glass-Steagall Act was passed in 1932 in response to the Stock Market Crash of 1929 and was repealed in 1999. After it was passed there were no Wall Street meltdowns from it's passage in 1932 until it was repealed in 1999. In 2001 just two years afters its repeal we had the Dot Com Crisis and then the 2007-2009 Global Financial Crisis. This quote from the link says it all:

“For about 70 years, Glass-Steagall managed to keep the riskier, more damaging part of Wall Street away from what should be the boring, straightforward side of finance,” Barry L. Ritholtz, chief executive of FusionIQ, an asset management and research firm, said. “It was the height of STUPIDITY repealing Glass-Steagall.”

I applaud Senators John McCain and Elizabeth Warren for introducing this legislation I only hope we can get the Administration on board and get this passed.

Watched her interview on CNBC a little earlier. Warren gets under my skin sometimes, but I think this thing is more than reasonable, and she hammered it home pretty well. The point that the banks had been crashing cyclically for decades prior to the original G-S, and had half a century of stability after it was passed, was a good one.

Ideologically pure, no. A good common sense measure, yes.

G-S worked for 70+ years.. Banks thrived, and made money hand over fist.. Saying that now re-instating it is radical and will upend the banking sector IMO doesn't ring true.

Nationalize the banking industry, and make it non-profit state agency.