[Peace-discuss] McCain campaign tied to bailout causes

[C. G. Estabrook]

Cockburn quotes Robert Pollin’s economic history of the Clinton years, "Contours 
of Descent":

     "The second major component of Clinton administration policy in this area 
was supporting the successful repeal of the Depression-era Glass-Steagall 
framework of financial regulation through the 1999 Financial Services 
Modernization Act, otherwise known as Gramm-Leach-Bliley Dismantlement of 
Glass-Steagall, de facto and de jure, had been long in the making. Innovative 
financial market players were easily circumventing this old regulatory 
apparatus, with its focus on creating firewalls between segments of the 
financial services industry, and preventing commercial banks from operating in 
more than one state. But the point is that an alternative to both Glass-Steagall 
and complete deregulation could have been devised, through some combination of 
policies such as taxing speculative financial transactions and establishing 
lower reserve requirements for loans that finance productive, as against 
speculative, investments. But the Clinton administration never considered such 
an approach. Quite the contrary. The 2001 Economic Report of the President, the 
last one written under Clinton, was unequivocal in dismissing Glass-Steagall and 
touting the virtues of financial deregulation:

     “‘Given the massive financial instability of the 1930s, narrowing the range 
of banks' activities was arguably important for that day and age. But those 
rules are not needed today, and the easing of interstate banking rules, along 
with the passage of the Financial Services Modernization Act of 1999 have 
removed them, while maintaining appropriate safeguards. These steps allow 
consolidation in the financial sector that will result in efficiency gains and 
provide new services for consumers.’

     “Moreover, Robert Rubin, a major Clinton administration force behind 
Glass-Steagall repeal, was also among the first to benefit personally from it, 
in moving from his Treasury position to co-direct the newly merged 
investment/commercial banking conglomerate Citigroup. Under any reasonable 
interpretation of Glass-Steagall, the former commercial bank Citicorp and the 
former investment banking firm Travelers would not have been permitted to merge."


mark bee wrote:
> C. G. Estabrook wrote:
>> Altho' it was Clinton and the Democrats who brought us financial 
>> deregulation,
> 
> ROFL   Don't forget to check out that last link when govtrack comes back up.
> IIRC, every Republican in the senate voted for Gramm-Leach-Bliley.  Every Dem
> but one voted against it.
> 
> 
> Gramm's sordid role is well known.  See e.g. the
>> leading left newsletter on the web: 
>> <http://www.counterpunch.org/cockburn09202008.html>.  --CGE
> 
> Dang, scooped by Cockburn!  lol  Guess he took time out from denying global
> warming.  ;)
> 
> http://www.huffingtonpost.com/joseph-a-palermo/alexander-cockburn-the-l_b_48956.html

Cockburn argues that it's unproven that global warming's primary cause is human 
activity.  His articles on the subject are quite interesting.