Yep. Saw all that and I did write in a post on this thread it ‘started’ with the repeal of Glass-Steagall creating the capability for all this to go forward.
Without repealing Glass-Steagall, there would have been no legal basis for all of what followed and the financial collapse would never have occurred.
Thanks for describing it further. The thread is about the Federal Reserve and the reason Glass-Steagall is being discussed is because the Federal Reserve was an accomplice to the collapse.
The Federal Reserve was created as a concession to the US federal government to print paper notes backed by gold and silver and to take out old worn notes and replace them with new paper notes. They used banks to accomplish this function.
How the Federal Reserve got in the business of making ‘loans’ to its members is another topic. But that is where a lot of the trouble is.
If I am the Federal Reserve, and you and I are at a market to buy things, I can snap my fingers and presto! I create money from nowhere and buy the things you need out from under you.
What have I done to your life? I’ve reduced you to ZERO. Because there is nothing you can buy with my notes unless I allow it. I can always buy you out. I can buy the car you want, the farm you need, everything. I control the value of your life and work.
And I will use banks (my banks, the member ‘investment’ banks) to make it happen. It used to be that Glass-Steagall prevented my member banks from messing with your local banks. It provided a firewall for you to be protected against my power.
Say you want to buy a spread of land for livestock. You have the money represented by my notes. Well, my bank can have its representative go to the seller and bid up the price and you get nothing. So your life can’t compete with my ability to create more notes.
You can’t compete and so your life is devalued. If I want, I can devalue your life to ZERO.
I can pick and choose who I want to win and who I want to lose. This is the danger of central banking especially when it becomes politicized. This is why our Founders and later leaders warned against central banking.
Central banking needs to be controlled, regulated because it is so powerful. Senator Phil Gramm, a PhD in Economics, decide to cut it loose by leading the effort to repeal Glass-Steagall.
“Without repealing Glass-Steagall, there would have been no legal basis for all of what followed and the financial collapse would never have occurred.”
That’s conjecture. I am sure the Democrats would have found a way, but that’s conjecture too. The facts are what I said. And of all the things you can complain about regarding the Fed they had nothing to do with this issue.