Since the 2008 bank bailouts, readers regularly ask, “what the hell is going on?” I’m not an economist, but I’ll try to explain things – and it isn’t pretty.
A major plank in problem-solving is, “Look at the consequences of your decisions, don’t let your solutions cause bigger problems.”
Since Clinton repealed the Glass-Steagall Act, the Fed and political class continue making bad decisions affecting us all.
No bank depositor lost money after the Glass-Steagall Act was passed during the Great Depression. When it was repealed, banks were allowed to merge into larger banks/brokerage houses, creating huge casino-banks, taking trillion-dollar risks with a new gimmick called derivatives.
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