Former Reagan Official: Make Glass-Steagall the Law of the Land
June 7, 2016 (EIRNS)—In a lengthy article published June 6 by www.thefallingdarkness.com, former Reagan administration official David Stockman proposes a "Super Glass-Steagall" as the only way to deal with the financial disaster existing in the United States today.
He emphasizes that, had the Congress been serious about fixing the system that caused the 2008 financial crash,
"it would not have bothered with Dodd-Frank at all—and its incomprehensible 1,700 pages of legislative pettifoggery."
Instead, Stockman states, it should have
"gone to the root of the problem and passed a Super Glass-Steagall that would have kicked the Wall Street-based gambling houses out of the FDIC entirely."
The Wall Street banking behemoths, he charges, have for decades abused and coopted deposit insurance, and it now stands as a "vast perversion of what had actually been intended...way back in the dark hours of 1934."
Stockman describes in great detail the crimes of the Too Big To Fail banks, and points out that under his proposed Super Glass-Steagall, those financial entities that wish to continue with their casino practices, derivatives trading, etc. would do so on the free-market, and sink or swim without protection. No multi-trillion bailouts, or TARP.
"Bring Back the Glass-Steagall Act" is the title of a June 6 posting on the Gold Eagle investor’s newsletter, which argues that "so-called financial openness"—deregulation—has raised the odds of a crash and increased inequality. Complaining about the financial instruments the big banks use "against us people," the author warns that the the only way to fix this is "to put the Glass-Steagall Act back as the law of the land." Otherwise, neither politicians nor central bankers have a clue of what to do about the deteriorating economy or the "financial condition of people, cities, states and countries around the world."