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"Removing the Glass-Steagall Act is a large part of why the government felt the need to dump 700billion in the financial markets." Really? Where's your eviden
by pragmatic 18y ago
"Removing the Glass-Steagall Act is a large part of why the government felt the need to dump 700billion in the financial markets."
Really? Where's your evidence? I'm not saying you're wrong, but that's a pretty big leap.
- Retric 18y agoGlass-Steagall Act had little to do with the cause of the collapse but if you trace the companies that received money some of them merged and become larger in ways that Glass-Steagall would have prevented. Nobody really cared if subsection of these organizations failed but the companies where structured in such a way that the CDS market and bad mortgage debt infected otherwise sound institutions. PS: For a slightly different take: http://www.marketwatch.com/news/story/would-glass-steagall-save-day-credit/story.aspx?guid= http://www.marketwatch.com/news/story/would-glass-steagall-s...{3AA33D85-AD38-41B4-B300-033235B5734A} Edit: that link is not working goto http://dealbook.blogs.nytimes.com/2007/09/10/would-glass-steagall-have-blunted-the-credit-crisis/ http://dealbook.blogs.nytimes.com/2007/09/10/would-glass-ste... then click on Go to Article from MarketWatch » at the bottom.