So the British have put together a new law, giving their government the power to break up big banks that fail to separate out commercial (old fashioned banking) from investment banking (gambling with depositor’s money). It appears to be similar to the protections offered here in the US by the old Glass Steagall Act. Put in place to help prevent another Great Depression, Glass Steagall, did pretty much the same thing and it was working pretty well until two Republicans put together a bill to kill it – a bill that was signed by Bill Clinton, just prior to his exit from the White House. When it came to killing Glass Steagall, “Slippery Bill,” was truly slippery. Any remnants of Glass Steagall that the bankers might find truly troublesome on their march into an ocean of sub-prime insanity were in turn wiped away by the administration of the “great decider,” George W. Bush. We all know what followed in 2008.
And now the British, in an effort to prevent another crash in the UK, are bringing the idea back. Any reason we can’t as well? Other than the fact that the Congress of the United States has been bought off by almost every big business enterprise you can think of, including banking and finance? You remember them? The guys who are too big to fail? Other than that. How do we get around those guys? And until we do, aren’t we just kidding ourselves about the whole democracy thing as we wait for the next big crash?