Why can’t we re-approve the Glass–Steagall Act?
Just another question I thought I should ask, to flesh out and refine my viewpoint on the Financial Regulatory bill. In much the same vain as my START conversation, I just want clarification on why Glass-Steagall, under which we had no financial crises, would not work now?
I also support the idea of unregulated markets as much as anyone. But if the people who are in the unregulated market get to come and get bailed out continuously, then we need a different mechanism. To wit: The savings and loan bailout, The Chrysler and GM bailout, and the TARP bailouts obtain here. If the government under either party has nary the backbone to tell these firms they are not too big to fail, then we probably need something like the old Glass-Steagall act to separate comercial banking and investment banking.
If someone has another or more important idea, I am open to it. I don’t trust Tim Geithner any farther than I can throw him, and his ideas for a permanent bailout of Wall Street reeks to high heaven for me.
All ideas by the sage reasoned posters of RedState are welcome.