The reality of the economic crisis which has been in the news lately is prompting the fight to restore some sanity to the banking system. Since the start of deregulation in the late 70s and culminating in the Gramm-Leach-Bliley Act, the banking system has gone from productive economic activity to reckless, speculative international “investing.” That is, they’re taking your hard earned savings and putting it in an international gambling house of greedy, criminal speculators.
In reaction to the same criminal speculative activity which caused the Great Depression, Roosevelt got the Glass-Steagall Act passed. That protected commercial banking from predatory, speculative investment banking, the very same activity which got us into this recession. In other words, there was a wall of separation between productive commercial banking and unregulated speculative investment activity.
The deregulation of the financial sector, and hence the wild speculation of Wall Street, caused the collapse of the housing market according to Congresswoman Marcy Kaptur. She just spoke at a House Budget Committee hearing.
I put an excerpt and a link to her web site to read more about it. The key thing to keep in mind is that there is a fight going on right now to save this nation economically, financially and politically. Either we, the American people, demand that out politicians support these measures to restore sanity in banking and finance, or Wall Street will lead us into a worse depression than the last one.
The current fight is around H.R. 1489, Return to Prudent Banking Act of 2011. It will return the provisions of FDRs original Glass-Steagall Act and break the power of Wall Street and the City of London Finance’s ability to control financial policy in this country, and probably world wide, for that matter.
“She said deregulation, culminating in the Gramm-Leach-Bliley Act, “unleashed the speculators” that eventually pulled the market under. She is the author of H.R. 1489, the Return to Prudent Banking Act of 2011, that would reinstate the provisions of Glass-Steagall legislation that prohibited banks from engaging in both commercial banking and investment banking.
“”For our nation to dig itself out of the worst housing depression since the Great Depression, we must go back and unwind what happened and restore prudent standards,” she said.”