“The American Dream is freedom; not a house”.
Had the best time talking #housing and #finance with Phil, Missy, and Kevin on Monday. Our discussion about zero interest policies were right on time; today is FED day and twitter buzzes with anticipation.
The Glass-Steagall Banking Act of 1933 comprised 37 pages and provided for a safer, more effective use of bank assets, it regulated interbank control, and prevented undue diversion of funds into speculative operations (gambling). In just 37 pages, Glass-Steagall ended Wall Street’s wild and speculative gambles that caused the Great Depression; it kept America’s economy growing for almost 70 years.
In 1994, interstate banking was allowed; in 1999, Glass-Steagall was repealed. It took banks less than five years to destroy America’s economy and put the world economy in a tail spin. Dodd-Frank is 829 pages and tried to address the same issues as Glass-Steagall but has failed to provide solutions; in fact, it’s done just the opposite. In 1933, Congress understood the business of banking and making sound loans to grow the U.S. economy.