Frontline: Money, Power, Wall Street (vol.-the good stuff is on tv when no one is home to watch)

[wr]

Like the title says. 
I didn't even come remotely close to doing anything to celebrate the 4th.

So I'm watching Frontline and it's like wow.

Basically what caught my attention was how the Investment Bankers for these large banks reigned havoc through selling derivatives to governments around the world that were comparable to the sub-prime lending to prospective homeowners here in America before the bubble. 

In the close to ten years since the glass-steagall  act was lifted, we ended up financially back to the same economic conditions and symptoms as the great depression. 

Plus the creation of the Euro and pretty much all of the European member countries cooked their books and misrepresented themselves in order to gain membership. There's a quote in the documentary along the lines of "If we didn't join the Eurozone, we would've had to look to North Africa for financial stability"

http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/

 

[wr]

 

[color me green]

Interesting. Will have to check this out

 

[odog24]

thanks for posting this.

it reminds of the movie documentary i have called inside job it talks about all these things that the banks did that led up to the 2008 "recession"

 

[wr]

A lot of people have been talking about this stuff for a long time but it was all in the realm of conspiracy until now that the proof is coming out. History is repeating itself...

 

[crcballer55]

I think the repeal of Glass-Steigel may have been the most destructive legislation to occur in the past half century. I was working with a bank during the financial crisis and the ability to refer our retail clients to our investment section seemed good at the time because it allowed them the opportunity to buy CD's & bonds at other bank through us while protecting their money through FDIC insurance. However, in hind site, if we didn't eliminate that wall in the first place, there would have been no need for a bailout of the retail banking industry and we could have allowed other firms like Lehman to collapse with must less consequence to other parts of the industry.

After bailing out the S&L's in the 80's, & banks/insurance companies/auto manufacturers/countries last decade, the precedence of moral hazard has all but been eliminated from the financial sector.

 

[wr]

Originally Posted by crcballer55

I think the repeal of Glass-Steigel may have been the most destructive legislation to occur in the past half century. I was working with a bank during the financial crisis and the ability to refer our retail clients to our investment section seemed good at the time because it allowed them the opportunity to buy CD's & bonds at other bank through us while protecting their money through FDIC insurance. However, in hind site, if we didn't eliminate that wall in the first place, there would have been no need for a bailout of the retail banking industry and we could have allowed other firms like Lehman to collapse with must less consequence to other parts of the industry.

After bailing out the S&L's in the 80's, & banks/insurance companies/auto manufacturers/countries last decade, the precedence of moral hazard has all but been eliminated from the financial sector.

Your insight on this topic is always appreciated. 
I have a few question for you.

What do you think is the end game for all of this?

Do you think it's possible that cyclical regulation/ de-regulation of industries ( not just financial but all) is the true mechanics behind the economics of our world today? Like a privately scheduled/controlled opening and closing of the flood gates every other decade?

 

[odog24]

do u think the economic system will recover or do u think it will collapse?

and is there any way to determine this?

 

[e3lal]

been trying to catch this on TV, but I guess I'll have to watch it online.