Billy wrote:
In article ,
Nad R wrote:

Times are different than the thirties. Banks in the seventies were
struggling with high inflation and high interest rates handcuffed by many
parts of Glass-Steagall. President Reagan removed many parts of that Act.
President Bill Clinton just finished it off. Economic times did get
better, but they also have consequences, like going into a great
depression.

Jumbo jets, gigantic transport ships the Internet and other modern
technologies have changed the world. The Glass-Steagall Act will not work
in a free trade global environment. For the Glass Steagall Act to work some
what, one first has to ban free trade.. If any nation can. In this global
corporations will just set up somewhere and black mail any nation they
choose from abroad.

Apparently, not everyone agrees with you.

http://www.nytimes.com/2011/01/28/opinion/28krugman.html?_r=1

January 27, 2011

Their Own Private Europe
By PAUL KRUGMAN

"The lesson of the Irish debacle, then, is very nearly the opposite of
what Mr. Ryan would have us believe. It doesn’t say “cut spending now,
or bad things will happen”; it says that balanced budgets won’t protect
you from crisis if you don’t effectively regulate your banks — a point
made in the newly released report of the Financial Crisis Inquiry
Commission, which concludes that “30 years of deregulation and reliance
on self-regulation” helped create our own catastrophe. Have I mentioned
that Republicans are doing everything they can to undermine financial
reform?"
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Rain today, garden tomorrow :O)

I know that most will disagree with me. I do agree that the banks went
wild. So are you saying that the US is responsible for Europe's financial
collapse because Glass-Steagall also controls the worlds banks. Does not
Europe have their own banking laws? I can see removing Glass-Steagall can
wreck the U.S. Banks, but Europe's banks as well? So Europe's banks are
controlled by our laws? I find this hard to believe.

I see the real-estate collapse more due to free trade, people loose their
jobs to slave labor nations like China, then they cannot make their house
payment, then property values drop, then banks assets go down, then banks
fail.

So Europe does not have their own banking laws, they use the U.S. Laws?

It is not U.S. Banking laws, it is evolution of the worlds economics
systems. What was true then is not true today. I will use physics as a
metaphor, Galileo stated "Mass is independent of Gravity", Newton proved
this wrong with his Laws of Gravity. Newton stated "Time was independent of
everything". Einstein proved that statement was wrong with his theories of
Relativity ( more fact than theory ). And between each time period for
hundreds of years, people believed they were correct until proven wrong.

Economics is more art, than science, Economics is more trial and error that
has evolved over the years and still evolving.

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Enjoy Life... Nad R (Garden in zone 5a Michigan)