Any comments on AIG suing the federal government?

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dingbat
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Re: Any comments on AIG suing the federal government?

Postby dingbat » Mon Jan 21, 2013 11:06 pm

LaBarrister wrote:
cooldude87 wrote:or just take away the power to bailout


Yes, you cannot take away the power to bailout. That would have even worse consequences than those from letting big banks get away without punishment. They really do have so much money that they have to stick around for our country to survive.

dingbat wrote:
LaBarrister wrote:How can we overcome this "too big to fail" conundrum? Isn't this essentially undermining our laws?

Let's start by reintroducing glass-steagel


Thanks for sharing this. I was unaware of Glass-Steagel until I read it here, and so then I looked it up. Sort of complicated but very interesting. I'm wondering why this was repealed in the first place.

Edit: "hear" =/= "here"

Short answer, because no one alive remembered why Glass-Steagel was enacted to begin with.
It wasn't repealed overnight, banks and legistators have been chipping away at it for decades before it finally fell.

The a slightly longer answer, when there's a problem in the financial world, regulations tighten up, to fixaddress the problem. A decade later, people no longer recall the reason for the regulation, but chafe at the restrictions, and the regulations get weakened, if not dropped. A decade later, there's another problem in the financial world, leading to tightening regulations. Que endless cycle.
note that I use the term decade, though it's not entirely accurate
The Great Depression and its fix was the same phenomenon, on steroids

edit: read this

second edit: Glass-Steagel TL;DR - commercial/investment/merchant banks cannot be consumer/deposit banks cannot be insurance companies
Last edited by dingbat on Mon Jan 21, 2013 11:09 pm, edited 1 time in total.

Mal Reynolds
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Re: Any comments on AIG suing the federal government?

Postby Mal Reynolds » Mon Jan 21, 2013 11:08 pm

IAFG wrote:FIDOUCHEYARY


Amirite?

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dingbat
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Re: Any comments on AIG suing the federal government?

Postby dingbat » Mon Jan 21, 2013 11:10 pm

for some reason I've been calling it Glass-Steagel, rather than Glass-Steagall.
Please forgive my bad spelling

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IAFG
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Re: Any comments on AIG suing the federal government?

Postby IAFG » Mon Jan 21, 2013 11:22 pm

Mal Reynolds wrote:
IAFG wrote:FIDOUCHEYARY


Amirite?

go home mal reynolds, you are drunk




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