Forum Post: Glass-Steagall Act and Mortgage Protection!

Much support and love to the protesters in New York: as a former resident, my heart and mind cry out to your cause. But wait, I've misspoke - it's my cause, too.

Something you should be aware of is the Glass-Steagall Act! This was a peice of legislation created in 1933, which did some complicated things. Most importantly, it created a legal separation between investment banks and commercial banks (the latter being the sort that average people use, every day, via checking and savings accounts.) It was dismantled in 1999 during the wave of optimism that preceded the tech stock crash; many economists believe its effective repeal is a major contributor to our current problems.

http://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_Act

Arguing for the reinstitution of this legislation is a coherent, solid talking point that makes a ton of sense given your cause. It might not kill capitalism, but the depression-era lawmakers knew what they were doing: its existence would do a great deal of good in helping to fix the current problems we face. Due to the deadlock and congressional squabbling we've been experiencing, no one outside of economic theory is even talking about this stuff: yet it is central to our problems. Enacting this would cut our banks, currently "too big to fail," down to chunks that could succeed (or not) based on their own merit. It would do a great deal to prevent the totalitarian consolidation of power that's gotten us into this mess.

The average American tends to shut their ears when you talk about dismantling capitalism. But addressing specific legislation will not only perk up the ears of economists, but ordinary folks as well.

Many well wishes to the folks on the street. I wish I could be right along side you. Unfortunately I, like so many others with college degrees, am working slightly over min-wage. Believe me - the second I can, I'll be driving in. Save a seat on one of those marble benches for me. :)