This interview gives insight on the proposed amendment that would stop taxpayer-backed commercial banks from trading risky assets. Sen. John McCain (R-AZ) explains his proposal on Kudlow.
Total firewall is the only way to control the slippery slop between the lending side and the risk-taking side. It is the right thing to restore. It is time for bankers to give up their magician mantle and go back to banking and for tax payers to get out of the risk subsidizing business.
Interesting that McCain says he is leaning away from endorsing Bernanke's re-appointment…could real change be actually coming?
Follow
____________________________
;
More often than commonly realized, the best “progressive” policy is paradoxically going “back to the future.” Reinstituting the Federal Reserve with deep wisdom of the kind held by former Federal Reserve Chairman Paul Volcker would be one approach of drawing on the past to improve chances for a better future. President Obama has been keeping Volcker's distinguished capabilities mostly on the sidelines in his economic advisory team, and, according to a NY Times article on October 20 (“Volcker Fails to Sell a Bank Strategy”), any influence that Volcker may have had in the administration “is fading and that he is rarely if ever in the small Washington office assigned to him.” If the Cantwell-McCain bill to reinstate the Glass-Steagall Act gathers momentum, then maybe there IS hope to put an end to mega-banks as we know them and with that curtail the excessive risks taken by large financial institutions.