Clinton, Republicans agree to deregulation of US financial system

[Mi Bankruptcy]

http://piggington.com/clinton_republicans_agree_to_deregulation_of_us_financial_system

[DeadManCrawling]

We never learn, I guess:

The Wall Street Journal celebrated the agreement to end such restrictions with an editorial declaring that the banks had been unfairly scapegoated for the Great Depression. The headline of one Journal article detailing the impact of the proposed law declared, "Finally, 1929 Begins to Fade."
This comment underscores the greatest irony in the banking deregulation bill. Legislation first adopted to save American capitalism from the consequences of the 1929 Wall Street Crash is being abolished just at the point where the conditions are emerging for an even greater speculative financial collapse.

And then, a comment about the S&L failures that had just occurred. Unreal. Now, I wonder if revisionist economists will one day find a way to place the blame outside the financial sector again, in the future.

Unreal.

Thanks for posting this very old, but pertinent, article.

Best,

-dmc

[Mi Bankruptcy]

Here is what jumped out at me other than the mention or some of the current financial institutions.

"Even more significant is its impact on the overall stability of US and world capitalism. The bill ties the banking system and the insurance industry even more directly to the volatile US stock market, virtually guaranteeing that any significant plunge on Wall Street will have an immediate and catastrophic impact throughout the US financial system."

"A financial deregulation bill was passed in the early 1980s under the Reagan administration, lifting many restrictions on the activities of savings and loan associations, which had previously been limited primarily to the home-loan market. The result was an orgy of speculation, profiteering and outright plundering of assets, culminating in collapse and the biggest financial bailout in US history, costing the federal government more than $500 billion. The repetition of such events in the much larger banking and securities markets would be beyond the scope of any federal bailout."

[Faust]

The magical "invisible hand" of the free market reaches out to punch us once again. When will we learn?

[momisery]

The Wall Street Journal celebrated the agreement to end such restrictions with an editorial declaring that the banks had been unfairly scapegoated for the Great Depression. The headline of one Journal article detailing the impact of the proposed law declared, "Finally, 1929 Begins to Fade."

Ha ha.... Okay, so they are now being fairly judged again.. I have no doubt that anyone who was in Washington at the time, either party would have signed this stupid thing for POWER and for GREED. We the people have a real problem, they have been circiling the wagons for years and we need to start shooting back, so to speak of course. A grassroots effort to elect people that are not in either party would be a great start.

[Mi Bankruptcy]

The quote above says "the bill ties the banking system with the insurance industry". How scary is that now that we are looking at government insurance health care overhaul?

[Tom_Mi]

The magical "invisible hand" of the free market reaches out to punch us once again. When will we learn?

unmitigated "free trade" and "free markets" is a religion, not a principle with any historical precedent.

[WhatMoney]

The quote above says "the bill ties the banking system with the insurance industry". How scary is that now that we are looking at government insurance health care overhaul?

Not scary at all - government insurance will be regulated, unlike the private insurance companies who have created the problems.

And the real quote is "The bill ties the banking system and the insurance industry even more directly to the volatile US stock market, virtually guaranteeing that any significant plunge on Wall Street will have an immediate and catastrophic impact throughout the US financial system."

Deregulation allowed banks and insurance companies to invest in and develop unregulated products for Wall Street. Financial risk reduction (so-called) products that were at the heart of the financial crisis of 2008.. This is what the bill assisted. Nothing to do with health care.