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 I'm wondering why this was repealed in the first place.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It wasn't repealed overnight, banks and legistators have been chipping away at it for decades before it finally fell.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
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