Bring Back Glass-Steagall

http://market-ticker.org/akcs-www?post=184237

Karl Denninger wants Glass Steagall back. I’m not an expert economist but it seems to be a good idea. Here are some quotes:

From Wiki pedia

http://en.wikipedia.org/wiki/Glass-Steagall_Act

“The repeal of provisions of the Glass–Steagall Act of 1933 by the Gramm-Leach-Bliley Act effectively removed the separation that previously existed between Wall Street investment banks and depository banks. Some experts believe that this repeal directly contributed to the severity of the Financial crisis of 2007–2010 by allowing banks to gamble with their depositor’s money”

And:

“Think-tanks such as the CEE Council have argued that the dismantlement of the Glass–Steagall Act was only the symptom of a much deeper problem: the emergence of a new economic paradigm associating the worst interpretations of Keynesian monetary stimulus with unbridled deregulation that came to define the Clinton and Bush eras (1993–2009).[38] In that perspective, they view the Dodd–Frank Act as insufficient, lacking the broad provisions necessary to restore financial orthodoxy and minimize conflicts of interests.”

Glass-Steagall would be a start, and a good one, but we have lots to do to restore fiscal sanity to Washington.

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