Loading ...Bob Moriarty:
What did Glass-Steagall do?
Goldfinger:
It created a separation between retail banking and investment banking.
Bob Moriarty:
Exactly. So when you repeal it, what did we turn the banking system into?
Goldfinger:
A big hedge fund?
Bob Moriarty:
Nope, a giant casino. It’s not even hedge funds. Okay. Hedge funds take losses. But the beauty about the system now is that if the banks make a profit, they get to keep it. But if they make a loss, it’s socialized and taxpayers have to pay it.
Glass-Steagall was one of the first things that Roosevelt insisted on in 1933 as soon as he took office and it literally solved the bank problem. If the FDIC and the Treasury and Congress came out and said, “Look, we’re going to attack the real problem,” the banking problem would go away overnight because a large part of the banks collapsing is because people think they’re going to collapse. And they are. Because they are nothing but corrupt casinos.