Question about Glass-Steagall Act

[OneGrassRoot]

Honestly, I had never heard of this until the last few days, and it's here at DU where I learned of its role in the current crisis.

Do you feel this is THE most significant legislative decision which led to the current crisis? The right wants to blame Clinton for everything, including both WWI and II -- it doesn't matter that it predates him; The Clenis is all powerful and spans time.

So, I've also read where he was largely at fault for the Glass-Steagall Act, and the hope is that Obama will repeal this Act.

I know wiki isn't necessarily the best resource, but from this one paragraph, it refers to this Act as "veto proof."

Thoughts? There is blame on so many levels...left, right and middle, no doubt, including with the consumers...but, legislatively, is this truly at the feet of the Republicans? In my heart of hearts, I certainly believe so; as one sign recently said, "Democrats may be spineless, but Republicans are evil." So true. :) And, Obama and Biden will erase that "spineless" label.


"The bill that ultimately repealed the Act was introduced in the Senate by Phil Gramm (R-TX) and in the House of Representatives by James Leach (R-IA) in 1999. The bills were passed by a 54-44 vote along party lines with Republican support in the Senate<8> and by a 343-86 vote in the House of Representatives<9>. Nov 4, 1999: After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bill resolving the differences was passed in the Senate 90-8-1 and in the House: 362-57-15. This veto proof legislation was signed into law by President Bill Clinton on November 12, 1999."

http://en.wikipedia.org/wiki/Glass-Steagall_Act

[WindRiverMan]

1. Absolutely, it allowed one sector's problems to bleed into all others

so instead of just banking getting hit, we have investment and insurance as well. The controls were in place to avoid all sectors getting pummeled by the same thing.


Just remember to point out that PHil Gramm, MCCAIN"S Financial Advisor, wrote the legistlation that made this mess possible.

[OneGrassRoot]

4. Yes, thanks for the reminder about Gramm! :)

[underpants]

2. So they are going to try to blame Clinton for this are they?

No one will buy it

[OneGrassRoot]

3. I am having to remind myself daily....

to NOT put energy into trying to educate those who believe Bill Clinton is responsible for EVERYTHING, or those who would never vote for Obama because, deep down, they are racist, even if his platform benefits them more than any Republican platform ever could.

THEY JUST DON'T GET IT, and I'm wasting time on them. Unfortunately, I don't have many around me who are undecided -- they usually fall into one camp or the other, the Hannity/Limbaugh camp, so they're hopeless.

[PA Democrat]

5. It's only a part of it.

Another Duer posted this great article by Robert Kuttner which has a pretty good explanation of how the whole mess happened.

http://www.alternet.org/workplace/99241/only_a_roosevelt-scale_counterrevolution_can_prevent_great_depression_ii

[OneGrassRoot]

6. Excellent. Thank you! n/t

[slackmaster]

7. Bill Clinton signed it because he believed in it, not because it was "veto proof"

I think focusing on Gramm-Leach-Bliley as the source of the present economic situation is a distraction. The real issue, if there has to be one and only one, is a complete lack of oversight of loan originations and underwriting. Millions of people have been coerced and deceived into taking on debt they could not repay, and that bad debt was transferred wholesale to investors who believed it was backed by the full faith and credit of the government.

[annabanana]

8. yeah. . . thanks DLC. .

It has worked out so well for so many. . . .

[alarimer]

9. Rubin, the Treasury Secretary (and DLC type) was pushing it.

But we cannot let the Democrats off the hook here, no matter how much we want to. They are really as much a part of the problem as the Republicans are. We need a new political party that is not reliant on corporations for funding and is not working on their behalf, instead of ours.

[OwnedByFerrets]

10. Clinton is far from blameless in this, but Gramm is the one we kick

the hardest on this issue.

[HamdenRice]

11. The repeal of Glass Steagal had little to do with the current crisis

I've explained my view here:

See posts 14, 15 & 16 here:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=42908#42960

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4027506&mesg_id=4027877