Comments on: One of the Most Decent People to Ever Serve in Congress http://archpundit.com/blog/2008/08/27/one-of-the-most-decent-people-to-ever-serve-in-congress/ Illinois, From Misery Sun, 21 Mar 2010 19:14:44 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: ArchPundit http://archpundit.com/blog/2008/08/27/one-of-the-most-decent-people-to-ever-serve-in-congress/comment-page-1/#comment-18179 ArchPundit Wed, 17 Sep 2008 15:22:38 +0000 http://archpundit.com/blog/?p=10023#comment-18179 GLB only dealt with the financial industry which is a more complex issue. What Gramm and Ruben had agreed to do was to completely repeal Glass Steagall including commerce and banking not just investment and traditional banking. I think there are valid criticisms of what they did pass, but while lots of people have claimed GLB is responsible in some form for the mortgage crisis, I'm not sure that's true. Nearly all of the major collapses have to do with investment banking and not the combination of the two types and then a major insurance company that bought bad securities. All of those things could happen without GLB AFAICT--I'm completely open to someone showing me I'm wrong though. I may be missing something--I fully admit. Gramm and Rubin wanted to go further--they wanted to allow commerce and banking to merge--so you could have the bank of Walmart or the Bank of Target. This would be far worse because when a company failed, the deposits would go down with it. The best counterfactual to the claim about GLB is that the US is still more restrictive than banking in most other countries. Where we differ is on securities regulation and that is where later Gramm really screwed us with the commodities trading act he passed that opened up the energy markets for manipulation and more. I'd argue that allowing complex financial instruments are far more dangerous than GLB--that said, I may be missing part of GLB that was damaging in that area. Either way, Gramm and Rubin wanted to go further--they wanted to completely repeal Glass Steagall and allow for commerce and banking to be combined which would be truly catastrophic. GLB only dealt with the financial industry which is a more complex issue. What Gramm and Ruben had agreed to do was to completely repeal Glass Steagall including commerce and banking not just investment and traditional banking. I think there are valid criticisms of what they did pass, but while lots of people have claimed GLB is responsible in some form for the mortgage crisis, I’m not sure that’s true.

Nearly all of the major collapses have to do with investment banking and not the combination of the two types and then a major insurance company that bought bad securities. All of those things could happen without GLB AFAICT–I’m completely open to someone showing me I’m wrong though. I may be missing something–I fully admit.

Gramm and Rubin wanted to go further–they wanted to allow commerce and banking to merge–so you could have the bank of Walmart or the Bank of Target. This would be far worse because when a company failed, the deposits would go down with it.

The best counterfactual to the claim about GLB is that the US is still more restrictive than banking in most other countries. Where we differ is on securities regulation and that is where later Gramm really screwed us with the commodities trading act he passed that opened up the energy markets for manipulation and more.

I’d argue that allowing complex financial instruments are far more dangerous than GLB–that said, I may be missing part of GLB that was damaging in that area.

Either way, Gramm and Rubin wanted to go further–they wanted to completely repeal Glass Steagall and allow for commerce and banking to be combined which would be truly catastrophic.

]]> By: John B. http://archpundit.com/blog/2008/08/27/one-of-the-most-decent-people-to-ever-serve-in-congress/comment-page-1/#comment-18174 John B. Wed, 17 Sep 2008 11:32:00 +0000 http://archpundit.com/blog/?p=10023#comment-18174 I don't disagree about Jim Leach's fundamental decency. But why do you say he "single-handedly stopped Phil Gramm and the Clinton administration from tearing down the walls between banking and commerce"? The <a href="http://thinkprogress.org/wonkroom/2008/09/15/mccain-econ-team/" rel="nofollow"> Gramm-Leach-Biley Act (1999)</a> bears his name as co-author, for goodness' sake! I am not knocking Leach, exactly, but I would dearly love to know a lot more detail showing how, if at all, he "stopped" that key cause of the current banking crisis. Either you're flat wrong OR what Gramm had in mind was even worse and Leach truly did all he could to protect America. Which is it and why? I am sincere in asking. It seems to me the nation needs to know just how far Phil Gramm wanted to go, on his own, since he is plainly McCain's first choice for Secretary of Treasury. I don’t disagree about Jim Leach’s fundamental decency. But why do you say he “single-handedly stopped Phil Gramm and the Clinton administration from tearing down the walls between banking and commerce”? The Gramm-Leach-Biley Act (1999) bears his name as co-author, for goodness’ sake!

I am not knocking Leach, exactly, but I would dearly love to know a lot more detail showing how, if at all, he “stopped” that key cause of the current banking crisis. Either you’re flat wrong OR what Gramm had in mind was even worse and Leach truly did all he could to protect America.

Which is it and why? I am sincere in asking. It seems to me the nation needs to know just how far Phil Gramm wanted to go, on his own, since he is plainly McCain’s first choice for Secretary of Treasury.

]]> By: leo http://archpundit.com/blog/2008/08/27/one-of-the-most-decent-people-to-ever-serve-in-congress/comment-page-1/#comment-18013 leo Thu, 28 Aug 2008 17:41:21 +0000 http://archpundit.com/blog/?p=10023#comment-18013 I didn’t know he was going to speak at the convention so when he walked up to the podium and gave his speech [I was surprised]. He is a decent guy. Maybe he should’ve switched over earlier. Ditto with Lincoln Chaffee. I didn’t know he was going to speak at the convention so when he walked up to the podium and gave his speech [I was surprised].

He is a decent guy. Maybe he should’ve switched over earlier. Ditto with Lincoln Chaffee.

]]> By: leo http://archpundit.com/blog/2008/08/27/one-of-the-most-decent-people-to-ever-serve-in-congress/comment-page-1/#comment-18012 leo Thu, 28 Aug 2008 17:40:42 +0000 http://archpundit.com/blog/?p=10023#comment-18012 I didn't know he was going to speak at the convention so when he walked up to the podium and gave his speech. He is a decent guy. Maybe he should've switched over earlier. Ditto with Lincoln Chaffee. I didn’t know he was going to speak at the convention so when he walked up to the podium and gave his speech.

He is a decent guy. Maybe he should’ve switched over earlier. Ditto with Lincoln Chaffee.

]]> By: Rob_N http://archpundit.com/blog/2008/08/27/one-of-the-most-decent-people-to-ever-serve-in-congress/comment-page-1/#comment-18010 Rob_N Thu, 28 Aug 2008 05:11:48 +0000 http://archpundit.com/blog/?p=10023#comment-18010 While it's good that Rep. Leach doesn't come with a bag full o' Lieberman-style bombast, it's also unfortunate in that you wouldn't even know that there are any Republicans endorsing Obama, let alone speaking at the Dems' convention, because there's no "draw" for the cable nets to cover it... Galldang this lazy media of ours sucks it big time. <i>Hey!</i> Is that a bright flashy loud thing over there? Let's go! While it’s good that Rep. Leach doesn’t come with a bag full o’ Lieberman-style bombast, it’s also unfortunate in that you wouldn’t even know that there are any Republicans endorsing Obama, let alone speaking at the Dems’ convention, because there’s no “draw” for the cable nets to cover it…

Galldang this lazy media of ours sucks it big time.

Hey! Is that a bright flashy loud thing over there? Let’s go!

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