In article ,
Nad R wrote:
Billy wrote:
In article ,
Nad R wrote:
However, not just banking laws. It was President Carter that allowed the US
government to purchase stocks. Before Carter it was illegal for the
government to own stocks. Many other governments of the world followed suit
and purchased stocks and bonds as well, which drove the stock markets even
higher. If the governments did not buy stocks, the world would not be in a
mess also. I believe this did far more damage than removing Glass-Steagal.
Does anyone else?
Really, when Glass Steagal prevented excessive leveraging? Leveraging
that went to $35 in commitments to $1 in cash on hand after Glass
Steagal was repealed. Then when the investment banks got our money, and
were given 0% interest loans, did they make that money available to
business in the form of loans? No, they took their (our) money and
invested it at 3% interest in T- bills, gave bonuses all around, and
headed on out to expensive resorts for retreats, uh-huh.
I guess your not old enough to remember or have a short memory of the super
high inflation days of Nixon and Carter. Companies could not afford those
double digit high Interest rates for expanding. Next to impossible to get a
home loan because banks then had little money. I was getting 13% on my time
deposits in the seventies. Everyone took the money out of banks and put
their money into the better paying stock markets in which dividends were
running about 15% annual rates. Banks were unable to compete with the stock
market due to very old and very restrictive banking laws.
You pick an extreme time in the 20th Century. There was doubling of oil
prices.
It was Ronald Reagan that started the dismantling of the Glass-Steagle.
Actually, he passed Tax Reform Act of 1986 and he was the first to
propose privatizing government, like we do with soldiers and spies now.
Glass-Steagle was all Summer's and Clinton's.
Then the banks were now able to get moving again and inflation started to
drop. But like many inflexible laws the pendulum started to swing far far
to the other side. The problem with many laws are they are not flexible
enough to change with the times.
What inflexible laws are you referring to?
Need to remember your history in order to improve the future.
To learn from
our mistakes. Not just keep from repeating past mistakes. The world needs
laws that are flexible, not strict laws. Strict laws work well, only in the
short term.
Getting a little sanctimonious?
--
- Billy
"When you give food to the poor, they call you a saint. When you ask why the poor have no food, they call you a communist."
-Archbishop Helder Camara
http://peace.mennolink.org/articles/...acegroups.html
http://english.aljazeera.net/indepth...130964689.html