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17 Oct 2020 03:05:50 UTC
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Exploding the Glass-Steagall Myth
This much-cherished liberal myth needs to die. This is my humble attempt to kill it. Nothing about the much-touted left-wing myth about the "repeal" of Glass-Steagall being the cause of the 2007-2008 financial crisis is true. Indeed, the rationale for it, even when originally passed in 1933, was deeply flawed, and much of the "evidence" that supposedly "necessitated" its passing was pulled from nowhere but the pigheadedly misguided pre-conceived notions of Senators about securities speculation, rather than from the realities of the economic situation in the US at the time. Virtually none of the charges made by Ferdinand Pecora against his banker bete noirs were true. Why was it passed, then? Because investment banker wanted to force commercial bankers out of their markets, and because Rockefeller-dominated specialized banks hated the competition from Morgan-dominated universal banks.

1. George Benston's book:

http://www.amazon.com/gp/product/0195208307?psc=1&redirect=true&ref_=oh_aui_search_detailpage

2. Lawrence J. White's paper on the "repeal" of Glass-Steagall:

http://papers.ssrn.com/sol3/papers.cf...
...
https://www.youtube.com/watch?v=SFgFp1N6bZk
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