Excellent, must-understand-article from Paul Craig Roberts on the necessity for a return to hard divisions between taxpayer-backed bank deposits and product sales and speculation by investment banks, should be read by everyone. See: Without Glass-Steagall America will fail.
I would broaden the statement beyond America to the free world: capitalism and democracy globally will are failing now. Restorative action in reconnecting loss responsibility to those taking capital risks is foundational for survival of a functioning society. This is no over-statement:
America cannot survive if excessive risks and financial fraud can be bailed out by taxpayers.
US Representatives Walter Jones and Marcy Kaptur and members of the House and staff on both sides of the aisle, along with former Goldman Sachs executive Nomi Prins and leaders of citizens’ groups, have arranged a briefing in the House of Representatives on June 14 about the importance of Glass-Steagall to the economic, political, and social stability of the United States. Let your representative know that you do not want the financial responsibility for the reckless financial practices of the big banks. Let your representative know also that you do not want big banks that dominate the financial arena. Let them know that you want the return of Glass-Steagall.
The effort to reduce the financial risks arising from the commingling of commercial and investment banking by requiring stronger capital positions of financial corporations is futile. The 2007-08 financial crisis required the taxpayers and the printing press and an amount of money that exceeded any realistic capital and liquidity requirements for financial institutions.
If we don’t re-enact Glass-Steagall, the risks taken by financial greed will complete the economic destruction of America.
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