27 October 2008, 12:43 pm
People keep arguing over who's to blame, Republicans or Democrats? So I did some research on it all: The Glass-Steagall Act was created in the 1930’s to prevent the Great Depression from ever happening again by separating regular banks (retail banks) from investment institutions by a “firewall” and illegalized credit-swaps which had created the massive losses by investment firms caught in the Crash (because they were like unregulated gambling side-bet “insurance claims” which had no guarantees of money to back them up). So the Glass-Steagall Act kept Wallstreet risks from harming and affecting regular banks (retail banks), and kept Wallstreet protected from the massive losses of gambling with credit-swaps. What Happened? Bills to repeal the 1933 Glass-Steagall Act were introduced to the U.S. Senate by Phil Gramm (R-Texas) and in the U.S. House of Representatives by Jim Leach (R-Iowa). The bills were >opposed by the majority of Democratsa financial services company based in Switzerland... Read More »
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