Robert Reich: Hillary Clinton's Glass-Steagall

[antigop]

http://www.huffingtonpost.com/robert-reich/hillary-clintons-glass-steagall_b_7798344.html

Hillary Clinton won't propose reinstating a bank break-up law known as the Glass-Steagall Act -- at least according to Alan Blinder, an economist who has been advising Clinton's campaign. "You're not going to see Glass-Steagall," Blinder said after her economic speech Monday in which she failed to mention it. Blinder said he had spoken to Clinton directly about Glass-Steagall.

This is a big mistake.

It's a mistake politically because people who believe Hillary Clinton is still too close to Wall Street will not be reassured by her position on Glass-Steagall. Many will recall that her husband led the way to repealing Glass Steagall in 1999 at the request of the big Wall Street banks.

It's a big mistake economically because the repeal of Glass-Steagall led directly to the 2008 Wall Street crash, and without it we're in danger of another one.

[cantbeserious]

1. Well What Do You Know -HRC Is Bought And Paid For By Wall Street

eom

[George II]

12. No she isn't.

[cantbeserious]

16. Article Says Different

eom

[elleng]

2. HUGE mistake, but no surprise.

[FreakinDJ]

3. No surprise

[Thinkingabout]

4. Why doesn't Hillary want just the repeal of the Glass-Stegall, because it would only have helped in

prevent the failure, there needs to be stronger language, expand the Dodd-Frank bill. I am surprised Reich did not gather this information from Hillary's presentation.

[jeff47]

21. Uh...what information?

Glass-Steagall was a specific policy. It required investment banks and commercial banks to be separated. That way when investment banks implode like they did in 2007, they don't take down commercial banks with them.

The 2007 crisis was much worse precisely because Glass-Steagall was repealed. The explosion was not contained within investment banking.

Clinton's speech did not include specific policy about how she would "strengthen" Dodd-Frank. So what information could Reich have gotten from her speech?

What specific policy we do have is Clinton does not want to reinstate Glass-Steagall, nor does she want to break up "too big to fail" banks.

[Thinkingabout]

22. The article said it would have helped, expanding Dodd-Frank to cover other issues

To prevent the bank failures.

[jeff47]

23. And again, that isn't specific policy.

"We'll expand Dodd-Frank somehow" isn't a specific policy. Thus there's no way to judge what sort of effect that would have.

We do know Glass-Steagall would have helped, in that the failing investment banks could not have taken down commercial banks with them. Because it is a specific policy.

[Thinkingabout]

25. Glass-Stegall would not have covered all the issues, even Glass-Stegall would need to be expanded.

[jeff47]

27. And I never claimed it would totally prevent any economic hardship.

I said it would have contained the damage to investment banking instead of blowing up all banking.

But hey, those goalposts weren't in a pretty location anyway.

[Admiral Loinpresser]

5. Get thee to the greatest page. n/t

[RoccoR5955]

6. This is a HUGE mistake on Mrs. Clinton's part.

If they are too big to fail, than something is seriously wrong.

[George II]

13. It's SECRETARY Clinton, not "Mrs." Clinton. That is the proper way of addressing her.

[RoccoR5955]

17. Excuse me. Mrs. Secretary Clinton...

I hope that you are satisfied. No reason to be so pedantic.

[progressoid]

19. Snort.

Better head over to the Hillary Clinton Group. There are a lot of posters in there incorrectly addressing her too.

[antigop]

7. Bernie Sanders: "Of course I believe in reestablishing Glass Steagall."

http://www.washingtonpost.com/blogs/plum-line/wp/2015/05/01/bernie-sanders-signals-aggressive-challenge-to-hillary-clinton/

In terms of Glass-Steagall, when I was in the House, I voted against all of this stuff. I predicted that by deregulating Wall Street and allowing a handful of these mega-financial institutions to grow and to merge that it would be disastrous for the economy. Of course I believe in reestablishing Glass Steagall. But let me go further. I do not believe that, given that six financial institutions have assets today around $10 trillion — 60 percent of the GDP of the United States — I do not believe that Congress has the capability of regulating Wall Street. I believe that Wall Street regulates the Congress and that you gotta break these guys up.

[daleanime]

10. +1

[Thinkingabout]

26. Reinstating Glass-Stegall is not enough, this act would only have helped, was not enough to cover

all the problems.

[840high]

8. kick

[SoapBox]

9. Kicked

Another reason I support Bernie and not HRC.

[WillyT]

11. Yep... K & R !!!

[jwirr]

14. K&R

[Yallow]

15. I Just Donated Another $20 to Bernie

We don't need another Clinton.

We need another Roosevelt.

[RoccoR5955]

18. +1 n/t

[Jefferson23]

20. For Hillary Clinton this would be a conflict of interest, imo. It would be a rebuke to her

husband Bill Clinton's legacy.

[Scuba]

24. K&R

[antigop]

28. Some saw it coming

mmonk's post:
http://www.democraticunderground.com/1017279135