Wednesday, October 14, 2015

BUBBLES | Which Candidate Best Understands Them?

Bernie Sanders wants to bring back Glass-Steagall; Hillary Clinton does not.
Pam and Russ Martens argue that Sen. Bernie Sanders showed in the debate on Tuesday the best appreciation of the causes of the 2008 financial meltdown, the risks remaining today. and what to do to regulate the financial markets.

The Martenses say that Hillary Clinton does not understand that Dodd-Frank gives power to the regulatory agencies to break up large banks.

They are impressed that Sanders opposed the 1999 teardown of the Glass portion of the 1933 Glass-Steagall Act, back when it happened. (The wall between commercial and investment banks was torn down, but the insurance of commercial-bank deposits proposed by Rep. Henry Steagall is still in place.)

Sanders wants to bring back the wall created by Senator Carter Glass (D-Va.). Hillary Clinton does not.

Although Sanders calls himself a Democratic Socialist and calls for revolution, what he is saying fits what the London Economist Magazine said in 1999. I pointed out the Economist position in Huffington Post in 2008.

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