Question: Serious federal reserve/ finance law question knowledgeable posters plz?


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Answer #1:

You got it right with your reference to the repeal of Glass-Steagall. That's what the bankers wanted and Clinton gave it to them on a silver platter. The rest is history. Had he not signed that repeal we would never have gotten into such a deep mess.
The "undue use" term covers a big grey area. Looks like the regulators just ignored it and let the banks do whatever they wanted. Can blame Barney Frank for that one.
To answer your first question.....the banks were not supposed to make such speculative bets but the repeal of G-S opened that Pandora's Box. I honestly don't know about your second question though. I would think there's a way around everything though....or at least there USED to be. Nowadays ya can't even get a small biz loan no matter what. The pendulum has swung to the opposite extreme. This is why the money is not getting out of the banking system. And this is why we haven't seen any inflation yet and won't for a long time. We are heading for a nasty DEflationary depression. At the very least, it will be a bad double-dip recession. This is inevitable despite what the pinheads say on TV. They need you to think things are getting better.....that's why the snow job. But that's another story.
The repeal of Glass-Steagall by Bill Clinton and also Alan Greenspan's mis-management of interest rates (kept too low too long) those are the reasons for the global financial disaster. Too much speculative trading by bankers. They created it. They fueled it and created a monster. Then *poof*. Then they got bailed out and are hoarding the money while still paying themselves insane salaries and bonuses. It really is astounding the gall these guys have and if the American public weren't so apathitic and retarded they would be going after these bastards and burning their homes to the ground. That's what needs to happen for this crap to end. Sorry for getting off-topic again. I'm just a little fed up and disgusted with it all. Guess I know too much and that's a bad thing sometimes. lol





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