| 2. Financial instability had minimal to zero systemic impact in advanced countries because banks were only permitted to engage in funding and financing directly related to the real economy. Um, the dotcom bubble happened under Glass-Steagall. So did 1987, the 1997 Asian financial crisis, and the 73-74 crash. 3. In addition, a side effect due to the partitioning and lack of artificial wealth interconnectedness, TBTF was not possible. No. The Savings&Loan bailout and LTCM bailout both occurred under the Glass-Steagall regime. 4. All manner of speculators were able to exist even then, but they knew they only had one chance with the capital they had since completely different types of financial activity were not allowed to co-mingle under the same organisation or group. You have no idea what you are talking about. The decline of product-specific trading desks was caused by the onset of stat-arb and had nothing to do with Glass-Steagall. 40 years later, here we are - in real (inflation-adjusted) economic terms per capita for median person effectively back to square zero... This is a statistical artifact. The median person who's parents were in the united states in 1968 has income (adjusted for chained CPI, which is not the same as inflation) 29% higher than their parents. Immigrants lower the average/median. http://crazybear.posterous.com/did-immigrants-and-simpsons-p... |