Glass-Steagel's Repeal Was a Diasaster

When we think about the changes that have taken place in the last 30 years politically one thing becomes obvious. Much of what we deem important is not and many legislative acts become much more important than we think at the time.

I always state that Reagan firing the Air Traffic Controllers was the beginning of the end of the significant power of labor unions.

I believe that McCain-Feingold was a very important act as it changed campaign finance law and now even more important as in it's appeal and reversal by the Supreme Court in the case now known as Citizens United has opened the floodgates of corporate money into elections.

Lastly and perhaps most important might be the reversal or repeal of the Glass-Steagel banking act in the late nineties. It should be noted that Clinton was the President when this happened. It also should be noted 90 Senators voted for this repeal. What did this mean. The original act from 1933 was part of the New Deal's restructuring of banks. This act also set up the Federal Deposit Insurance Corporation. The main purpose of the bill however put a wall between banks and securities. For obvious reasons it was felt that banks should be staid, conservative businesses while securities and stock transactions certainly are more risky.

The repeal of Glass Steagel in 1999 set up the destructive economy of 2008. The fact that all the banks were in free fall was not because they were depositing the money from Aunt Thelma and Uncle Bob. It was because they were giving bad loans and funneling them into hedge funds. Banks and their desire to make money hand over fist were the reason the economy failed. Too Big to Fail ties back complety to Glass-Steagel.

As Russ Feingold, the popular Wisconsin Democrat stated on Bill Maher last week, it was Corporate Democrats and Corporate Republicans and the not a dime's worth of difference between them on financial issues that sold America down the river for profits pending with the reversal of Glass Steagel.

Always follow the money when you see a bill going through Congress. Let them dress it up anyway they want,,,,but follow the money. If the big boys, corporations and banks are going to make money you can rest assured that for you and me it is not a good bill. We will pay now or later or in most cases both.

Anyone who voted for that repeal has a hard look in the mirror. Of course it is likely that the mirror is gold plated.