“When a member of the United States Senate makes such a statement, it frightens depositors."
Exactly like 1938, when Neville Chamberlain frightened Hitler so badly he panicked and invaded Poland.
-snicker- Almost made me forget my comment ...
Let's not forget which depositors made the run, in all this excitement. FDIC covers up to $100K, so I'm forced to guess that it's folks with more than that who were afeared for their savings. No run, no failure. I'd guess that for most folks in this country, having 100 grand in the bank is a pipe dream - sure is for me.
one of the lessons we kept hearing during the savings and loan disaster of the 80s was:
these people have figured out that the best way to rob a bank is to own one.
i bet there were some nifty bonuses paid out last quarter.
Even though I don't know all the details of this situation, I certainly won't be entirely surprised if the repeal of the Glass-Steagle Act in 1999 by a Republican congress had something to do with it. (And if Slick Willie gave his support to this terrible mistake, I wouldn't be surprised at that either, so there.)
Once this rather euphemistically-named "contraction" ends, one is permitted to hope that regulation will come back to the banking system so we might avoid this shit in the future.
Doubt it, though.
"Even though I don't know all the details of this situation, I certainly won't be entirely surprised if the repeal of the Glass-Steagle Act in 1999 by a Republican congress had something to do with it. (And if Slick Willie gave his support to this terrible mistake, I wouldn't be surprised at that either, so there.)"
Loveandlight | 07.12.08 - 1:37 am | #
And the guy who pushed for the Glass-Steagle repeal was Clinton's Treasury secretary, Bob Rubin. And he is now Obama's chief economic advisor. Which means that even if Obama wins, Wall Street will still be calling the shots, of course.
[blushes]According to my own provided link, the proper spelling is "Glass-Steagall Act".[/blushes]
Shumer
’s reckless words will cause suffering to those he allegedly is championing. Those with multiple accounts under $100,000 but totaling more than $100,000 are probably screwed. During the S & L mess I had a friend with three accounts each under $100,000 that totaled $230,000. She was reimbursed a total of $100,000. Those at the S & L assured her all the money was insured. There was another S & L across the street. She lobbied Congress to no avail.
Schumer did not cause the collapse of this terminal bank.
To:LoveandLight-----Professor Austan Goolsbee,is Senator Obama's economic adviser not Bob Rubin.
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