[jolepp]

http://www.nytimes.com/2011/06/18/opinion/18nocera.html?_r=1&hp

“The spirit of speculation should be eradicated from the management of commercial banks,” declared Winthrop Aldrich, the chairman of Chase National Bank

Amen. Banks are a key part of the financial infrastructure, the rest of the economy depends on them: they must be operated with low risk (=meager profit); high risk (= high profit) can only exist with the freedom to fail.

[Coeurdechene]

The problem is that they know they are too big to fail, that they have condoned the debt of the big political parties and got them in their pockets (here in Spain at least), they have an alarming lack of ethics and act recklessly (the Bank of Spain warned the big comercial banks about the "crisis" and asked them to make provisions for it out of their huge profits, wich they didn't...and then got "rescued").
The political class is crooked and captive in that vicious circle, pressure is needed but people are so afraid and so mind numbed that they tend to this legalist speech and course of action...and that ties us and prevent us from doing real pression, the type of pression they have to bend to.
Let's hope people awake and demand the draconian regulations needed....what disturbs me the most is that here we have the most harsh penal code and system...petty thieves may suffer quite long terms of prison while big "white glove" ones that affect the whole economy do not face responsabilities and their mistakes are paid with public money WHILE they keep their charges and positions.
Looks like prison is only for the poor and the "radical".

[apisto]

The problem is that they know they are too big to fail, that they have condoned the debt of the big political parties and got them in their pockets (here in Spain at least), they have an alarming lack of ethics and act recklessly (the Bank of Spain warned the big comercial banks about the "crisis" and asked them to make provisions for it out of their huge profits, wich they didn't...and then got "rescued").
The political class is crooked and captive in that vicious circle, pressure is needed but people are so afraid and so mind numbed that they tend to this legalist speech and course of action...and that ties us and prevent us from doing real pression, the type of pression they have to bend to.
Let's hope people awake and demand the draconian regulations needed....what disturbs me the most is that here we have the most harsh penal code and system...petty thieves may suffer quite long terms of prison while big "white glove" ones that affect the whole economy do not face responsabilities and their mistakes are paid with public money WHILE they keep their charges and positions.
Looks like prison is only for the poor and the "radical".

That is certainly not only spain. In the US it is not only who gets prosecuted that is out of whack, but scentencing as well. I remember in one day's edition of the local newspaper about a year ago, there were two seperate stories. One was about the scentencing of a man who had abducted and raped a teenage girl. The other story was about someone scentenced for copyright infringment (copying DVDs). Guess which person got the stiffer punishment? That's right, the DVD copier.

[GeneV]

http://www.nytimes.com/2011/06/18/opinion/18nocera.html?_r=1&hp

Amen. Banks are a key part of the financial infrastructure, the rest of the economy depends on them: they must be operated with low risk (=meager profit); high risk (= high profit) can only exist with the freedom to fail.

Great article. Glass-Steagall not only kept the banks out of risky business, but it made sure that if the banks do fail, they don't take the small depositors with them.

[jogiba]

On Capitol Hill, Mr. Gramm became the most effective proponent of deregulation in a generation, by dint of his expertise (a Ph.D in economics), free-market ideology, perch on the Senate banking committee and force of personality (a writer in Texas once called him “a snapping turtle”). And in one remarkable stretch from 1999 to 2001, he pushed laws and promoted policies that he says unshackled businesses from needless restraints but his critics charge significantly contributed to the financial crisis that has rattled the nation.

The Reckoning - Phil Gramm, Unswayed Champion of Deregulation - Series - NYTimes.com

[GeneV]

Unfortunately, you need to put William Jefferson Clinton on the poster. Without his signature, this would not have been possible.

[jeffkrol]

Bill Clinton, Glass-Steagall and the Current Financial and Mortgage Crisis, Part Two of an InDepth Investigative Report The Strange Death of Liberal America



Clinton at least, apologized for what he did. Not sure if he even knew all of what he wrought.............


http://money.usnews.com/money/blogs/capital-commerce/2008/03/31/phil-gramm-i...ubprime-crisis

Phil Gramm: I Didn't Cause the Subprime Crisis

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Last edited by jeffkrol; 06-22-2011 at 07:54 AM.