PASS IT ON! 170 Top Economists Pen Letter Backing Bernie Sanders’ Plan To Break Up The Biggest Banks
Last edited Fri Jan 15, 2016, 08:11 AM - Edit history (1)
Whenever the subject of Sen. Bernie Sanders (I-VT) and his economic plans come up, the Republican response is always the same. “SOCIALISM!” they cry, swiftly followed by hyperbolic imagery that invokes the bread lines of the Soviet Union and massive famines in China, entirely ignorant of the vast differences between democratic socialism and totalitarian communism – like their refusal to distinguish between “free market capitalism” and “unrestricted plutocracy.” It’s nothing but a fear-mongering campaign attempting to smear the sound and reasonable policies of democratic socialism that would strike at the very heart of American oligarchy, that would put a stop to the funneling of wealth to the top 1% of Americans and the overwhelming power of the gargantuan financial institutions of Wall Street.
It’s very ironic, because time and time again the data shows that collections of corporate handouts and subsidies for the ultrawealthy that the right tries to pass off as “tax plans” would be disastrous for both the American middle class and our economy as a whole. On the other hand, Bernie Sanders’ comprehensive financial reform plan has been endorsed by over 170 respected economists and financial analysts, who have gone as far as to sign a letter endorsing them as critical to the financial health of our nation:
In our view, Sen. Bernie Sanders’ plan for comprehensive financial reform is critical for avoiding another “too-big-to-fail” financial crisis. The Senator is correct that the biggest banks must be broken up and that a new 21st Century Glass-Steagall Act, separating investment from commercial banking, must be enacted. Wall Street’s largest banks are now far bigger than they were before the crisis, and they still have every incentive to take excessive risks. No major Wall Street executive has been indicted for the fraudulent behavior that led up to the 2008 crash, and fines imposed on the banks have been only a fraction of the banks’ potential gains. In addition, the banks and their lobbyists have succeeded in watering down the Dodd-Frank reform legislation, and the financial institutions that pose the greatest risk to our economy have still not devised sufficient “living wills” for winding down their operations in the event of another crisis.
Secretary Hillary Clinton’s more modest proposals do not go far enough. They call for a bit more oversight and a few new charges on shadow banking activity, but they leave intact the titanic financial conglomerates that practice most shadow banking. As a result, her plan does not adequately reduce the serious risks our financial system poses to the American economy and to individual Americans. Given the size and political power of Wall Street, her proposals would only invite more dilution and finagle. (emphasis added)
The only way to contain Wall Street’s excesses is with reforms sufficiently bold and public they can’t be watered down. That’s why we support Senator Sanders’s plans for busting up the biggest banks and resurrecting a modernized version of Glass-Steagall.
http://www.occupydemocrats.com/170-top-economists-pen-letter-backing-bernie-sanders-plan-to-break-up-the-biggest-banks/
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