21 August, 2008
This is nothing but wrong-headed horse shit!
We have the financial system of the 1920's since the repeal of all New Deal legislation that formerly protected us.
The Glass-Steagall Act of 1933 which established the Federal Deposit Insurance Corporation (FDIC) and included banking reforms which were designed to control speculation no longer stands. Some provisions such as Regulation Q that allowed the Federal Reserve to regulate interest rates in savings accounts were repealed by the Depository Institutions Deregulation and Monetary Control Act of 1980. Other provisions which prohibit a bank holding company from owning other financial companies were repealed in 1999 by the Gramm-Leach-Bliley Act.
Both the Securities Act of 1933 and the Securities Exchange Act of 1934 which prevented fraud and manipulation of our stock exchanges have largely been dismembered as well.
The Tsunami of financial disaster that is hitting us now would never have been permitted under New Deal legislation — the 1930's Financial System that is being so slanderously maligned here.