4 ms·
Just reinstate the GS Act, already! Must we wait until the banks, funds & their ilk completely ruin more markets and put mllions og REAL PEOPLE in more desperat
by tunap 9y ago
Just reinstate the GS Act, already! Must we wait until the banks, funds & their ilk completely ruin more markets and put mllions og REAL PEOPLE in more desperate, stagflating situations on more fronts?
Let the wealth managers apply their smarts to actually creating tangible value to society instead of nicking more margins for "the investors". Parasitoid behavior kills the host every time.
https://en.wikipedia.org/wiki/Decline_of_the_Glass%E2%80%93Steagall_Act https://en.wikipedia.org/wiki/Decline_of_the_Glass%E2%80%93S...
- linkregister 9y agoHow would the reinstatement of that act solve the problem in the article?
- Terr_ 9y agoMy guess for what they mean (not making judgments or asserting these as fact) would be something like: 1. The risky return-focused investment money is still going into housing, despite the 2008 great recession. ("It can't happen twice, right?") 2. A significant portion of that wealth is actually from "non-gambler" savings, and "should" be more conservatively held. 3. Glass-Steagall would help do that, with the side-effect of making housing more broadly affordable for people who need the direct utility of the house.
- valuearb 9y agoGlass-Steagal was just a competitive barrier that made markets less efficient, why would restoring it make anything better?
- icebraining 9y agoI have to say, this post is a bad example of writing to your audience. Outside of a few communities, even the idea that market efficiency is a goal to be achieved is not generally accepted. You should be more specific in describing the way Glass-Steagal was actually making things worse.
- tunap 9y agoIt was a barrier to nonparticipants from meddling in markets. Leveraging differentials to siphon auxiliary wealth drains said markets & raises prices for the participants involved. Then add the spurious actors who create artificial events(shortages) to further leverage returns. That's where bubbles appear & without said barriers the world economy has been, still is, broken twice now.