They Knew the Banking Colapse Was Coming
Wasn't sure whether "Conspiracy Theories" or "Political Zoo" was most appropriate on this one... But here goes.
There is currently a post on The Godless Heathen with an article from the New York Times that was printed in 1999.
In 1999 the Senate, the House, and then the president chose to repeal the Glass-Steagall Act of 1933. "The decision to repeal the Glass-Steagall Act of 1933 provoked dire warnings from a handful of dissenters that the deregulation of Wall Street would someday wreak havoc on the nation’s financial system. The original idea behind Glass-Steagall was that separation between bankers and brokers would reduce the potential conflicts of interest that were thought to have contributed to the speculative stock frenzy before the Depression."
I think we may have found a true and real prophet! One of the objectors, North Dakota Senator Byron L. Dorgan said "I think we will look back in 10 years’ time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930’s is true in 2010." Well, I guess he was about a year too long on his prediction. But holy shit! They knew it would come, and they didn't care.
Be sure to go read the whole article (if this kind of thing interests you).
There is currently a post on The Godless Heathen with an article from the New York Times that was printed in 1999.
In 1999 the Senate, the House, and then the president chose to repeal the Glass-Steagall Act of 1933. "The decision to repeal the Glass-Steagall Act of 1933 provoked dire warnings from a handful of dissenters that the deregulation of Wall Street would someday wreak havoc on the nation’s financial system. The original idea behind Glass-Steagall was that separation between bankers and brokers would reduce the potential conflicts of interest that were thought to have contributed to the speculative stock frenzy before the Depression."
I think we may have found a true and real prophet! One of the objectors, North Dakota Senator Byron L. Dorgan said "I think we will look back in 10 years’ time and say we should not have done this but we did because we forgot the lessons of the past, and that that which is true in the 1930’s is true in 2010." Well, I guess he was about a year too long on his prediction. But holy shit! They knew it would come, and they didn't care.
Be sure to go read the whole article (if this kind of thing interests you).
Tags: 1999, banking, conspiracy, finance, financial-planning, idiots, politics
Replies to This Discussion
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Permalink Reply by Morgan Matthew on -
As long as there is greed it's a never ending cycle. Good post Johnny
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Permalink Reply by Rev. James Thomas Hicks, D.D. on -
Conspiracy turns to fact.
Where'd I put my tinfoil hat?
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Permalink Reply by Johnny on -
Check out the video I just found. Briefly mentions the repeal.
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Permalink Reply by Michael N on
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One thing that you can't forget - but that everyone has been forgetting - is that we have never had a true free market capitalist society. So, you can't say this is an example of the harm of deregulation or the good of regulation. The system is so entwined with cronies, government regulation, undue influence from lobbying and government buddies, and misinformation that taking away one regulation is not deregulation at all. If I can use a metaphor I just crafted, it's cutting away at a bungee cord while the person is still dangling - eventually it's going to snap. Reeling the person up, removing all of the bungee cords and letting the person go free is the only responsible, safe and wise move to make. Glass-Steagall was gone, but artificially low interest rates, government "mandated" easy access to home loans, government credit rating bureaus, and poor monetary policy still remained and weighed down the remaining cords until splat.
Peter Schiff, one of the few economists that actually did predict the economic collapse, explained this very well whenever he could get on TV but other economists laughed in his face. I bet they aren't laughing now. There's a bunch of his past interviews on YouTube.
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Permalink Reply by Johnny on
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The bungee cord is a good analogy; Glass-Steagall was just a slice in the many slices it took to cut the cord.
I find a touch of irony, and a piece of fuel for the conspiracy fire, to hear that Dorgan predicted 10 years, and almost got it right on the nose.
I'm not versed enough in it to know or even pretend to know everything that caused the collapse; I just get the idea that some of it was predicted, some of it was preventable, and some of it was pure corruption.
Thanks for the info on Peter Schiff; I'll have to look into that.
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