Saturday, September 13, 2008

Glass-Steagall Revisited

Finally! A capitalist has brought up the subject of the Class-Steagall Act of 1933 and it's repeal in 1999. Writing in Forbes.com, Barry Ritholtz of The Big Picture calls for the break-up of banks from investment houses. There's a good thumbnail sketch, in the Forbes article, of how we went from the depression era banking reforms, to over regulation, to Reagan's free market reforms and finally to the over-zealous libertarian free for all mess that we see today. I'm really starting to like this guy.

BTW, Glass and Steagall were both Democrats. I can say nice things about them sometimes. It's allowed.

2 comments:

Barry Ritholtz said...

Is it asking too much to be governed by pragmatic non-idealogues?

Local So-and-so said...

Probably. Pragmatists tend to get steamrolled. Getting the government to stop micro-managing the economy might be the easier path.