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To: RayChuang88
Your suggestions re commodities and futures are merritless and will cause either a crash, or stagnation;at best.

You left out the CRASH of '87, which would have happened even with your regulation suggestions.

You want those doing commodity futures to have to take 40% of the commodity? Do you not understand that farmers buy commodity futures to try to lock in prices and don't want possession of that commodity?

Presidents aren't dictators and any candidate that would layout you plan, would be out of her or her mind!

Sheeeeeeeeeeeeeeeeeeeeeeeeesh; do you want Palin to lose?

169 posted on 07/17/2011 8:18:28 PM PDT by nopardons
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To: nopardons
I have to disagree with your assessments.

Look at the history of Goldman Sachs--they were heavily involved in the margin trading that in the end caused the 1929 stock market crash--a crash made worse because bank assets were affected by that crash, resulting in thousands of bank failures all over the USA. And the same company got heavily involved in a lot of the new-style investments like derivatives, hedge funds, and credit default swaps, which made the company a lot of money but to the literal expense of everything else in the US economy, as we've seen from how well Goldman Sachs managed to survive the 2008 stock market crash.

One of FDR's few smart moves was to sign the 1933 Glass-Steagall Act--an act that provided a lot of stability to banks because bank assets were "firewalled" from the ups and downs of the stock market. And it was this "firewall" that literally protected the US economy from the 1987 stock market crash (because bank assets were not affected) and protected the economy from the effects of the 1997-1999 Asian financial crisis.

Look at what happened after Glass-Steagall was repealed in 1999: banks got heavily into the investment business. So while from 2000 to 2006 they made a LOT of profit, once the housing bubble burst, these banks started to lose money at a huge rate, and when the stock market finally crashed in September 2008 many banks failed just like what happened after the 1929 stock market crash.

As such, this is why I want those controls I mentioned earlier in place. This protects bank assets, very important because too many people's life savings are stored in those bank assets, and we all read from history what happened during the spate of bank failures before Glass-Steagall was signed into law.

193 posted on 07/18/2011 5:14:28 AM PDT by RayChuang88 (FairTax: America's economic cure)
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