Donald Trump is just bad from a free market perspective, I mean terrible when it comes to economics.
Al Hunt reports:
The Trump forces, eager to paint their certain Democratic opponent, Hillary Clinton, as the candidate of Wall Street, inserted a platform plank calling for the reinstatement of the Depression-era Glass-Steagall law. Reviving that law, which was repealed in 1999, would break up big banking companies.The problem with the banking system is not the lack of government control, regulations and oversight, but rather the Federal Reserve System, which protects a banking elitist class.
Trump never seems to call for a reduction in government interference but rather favors interference designed by him.
Not good.
-RW
You gotta admit Glass-Steagall kept a bad system from going full retard. Yeah, yeah, I know, NOT doctrinaire Austro-Hungarian libertarianism, but still....
ReplyDeleteHow? Most of it is still in effect.
DeleteTom Woods? Real Dissent Tom Woods? Please explain what parts are still in effect. Then I will respond. I seem to recall Phil Gramm & Co. removing all the obstacles to investment bank subsidiaries gambling with depositor monies in about 98 or 99. Shortly thereafter, Chase Bank resumed its status as JP Morgan Chase. Do enlighten me sir...
Deleteeasy
Deletehttps://www.washingtonpost.com/lets-shatter-the-myth-on-glass-steagall/2012/07/27/gJQASaOAGX_story.html
or if you want to listen
Deletehttp://tomwoods.com/podcast/ep-638-did-deregulation-cause-the-financial-crisis/
@Heath: Thanks for the link. I read the WaPo article. The comments as well. I'm not sure the issue is so cut and dry. My point was not that Glass-Steagall was some sort of even remotely libertarian aspiration but that Carter Glass & Co. put together a regulatory regime that did address some of the abuses of their era and it worked pretty well for 60 or so years. IMO, it's gradual repeal, culminating in 99 with GLB, was not solely to blame for the growing financial crises & bailouts, including the 08 financial crisis, or TBTF but it probably was a factor.
ReplyDelete