U.S. back to 1933 with Glass-Steagall

It was a very busy morning and we had some minor issues to handle. In general I do enjoy a busy morning and may be one of those who actually look forward to you an exciting, eventful and loaded work day rather than to just sit in the office waiting for the day to end. Yes, I love my job and that is why I enjoy busy mornings.

By now smart money has given up on positive developments out of the U.S., especially when it comes to the financial system. They have ruined their system to the point it is worth less than that of a third-world country and all non-U.S. brokers are forced to treat U.S. traders are less than those traders from the bottom of the totem pole.

Among the most idiotic regulatory changes the U.S. has raped the free market with are

• Glass-Steagall Act also known as the Banking Act of 1933
• Sarbanes-Oxley Act of 2002
• Dodd-Frank Wall Street Reform and Consumer Protection Act 2010
• Volcker Rule (part of Dodd-Frank) 2010

All of those acts and reforms have made the U.S. financial system less competitive and despite the fact that Glass-Steagall was put together by the socialistic pesticides it was one of their own, former President Bill Clinton, who declared in 1998 that the Glass-Steagall Act was no longer valid. Dumb money cites the abolishment of Glass-Steagall as the source of the financial crisis; a claim as pathetic as their moronic attempts to navigate through financial markets.

Now it is another one among their own ranks, socialist scum Senator Elizabeth Warren, who wants to bring back the Glass-Steagall Act. In other words she wants to re-create the financial system the U.S. had back in 1933. The rest of the world innovates and evolves while the U.S, made it a mission to kill innovation and devolve while still screaming ‘We are number one!’. Being a New Yawker, this really strikes hard and it strikes home.

The socialists ruined the financial system and continue to cause to bleed to death in the streets while it forces tax payers to pay for their pathetic stupidity and now they want to put the U.S. back 80 years. It appears the Senator McCain has given up on the country and actually supports it. Of course he would, he was alive when the 1933 bill was introduced.

What is the Glass-Steagall Banking Act of 1933 (do not confuse it with the Glass-Steagall Act of 19332)?

Most people refer to four specific sections of the Glass-Steagall Act

• Section 16 – Prohibited banks in dealing in securities for their own accounts unless the Comptroller of the Currency classified them as national bank investments or they dealt in federal, state or municipal securities classified as ‘bank-eligible
• Section 20 – Prohibited banks from any affiliation with investment firms
• Section 21 – Prohibited banks from taking deposits for investment purposes
• Section 32 – Prohibited banks from having directors or officer who were also employed by investment firms

The Glass-Steagall perversion only covered banks who were a  member of the Federal Reserve System and as always with those socialistic pricks they create a two tier system and force smart money to innovate or leave the system altogether which explains why London became the financial capital of the world in early 2000 and replaced New York.

I am scratching my head and laughing at the same time as this socialistic joke by a lousy excuse of a Senator. It will tear apart the economy even further and clearly shows that the socialist bastards did not understand the problems which caused the collapse of the financial system and that they are charging after the wrong sectors.

Sections 16 and 21 are still intact, but the Gramm-Leach-BlileyAct or the Financial Services Modernization Act of 1999 repealed Sections 20 and 32. Now the socialistic pricks want to turn back the hands of time and ensure that every other country will frown when they hear about the U.S. financial system and doing business together with them.

It will also continue to force talent out of the country and overall decreases the available talent pool for vital positions which means that moronic feces like Bernanke will run the Federal Reserve. It is a downward death spiral which will lead to the total collapse of the U.S.

Posted in: dumb money, financial industry, financial system, Glass-Steagall, regulation, smart money, socialism