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Posts Tagged ‘commision’

One more bank down. Washington Mutual fell today and was bought out by JP Morgan Chase. This means, in effect, that the debts and bad loans of a speculative investment firm have been merged into a commercial bank. This cannot be good. When we look back at one of the causes of the great depression, the investment firms and the commercial banks were allowed to merge. When you combine a high risk investment firm with a commercial bank it is inevitable for there to be problems without any government oversight. The first thing FDR did to get us out of a depression was to separate the two types of banks from each other and pass legislation stating that they were not allowed to merge anymore. Then he insured the commercial banks and told the investment banks that they were going to be on their own.  The Glass Stegall Act was created to oversee the investment firms and make sure that they were not gambling and taking impossible risks.

In 1999 under President Clinton the Glass Stegall Act was repealed.  The advice to remove this Act came from Barack Obama’s campaign advisor and then Secretary of the Treasury Robert Rubin.  I bring up this point to remind Democrats that they are not free from fault in this crisis and that it was under a democratic
president where the problem got out of hand.

Now we are seeing these investment firms falling and being bought out by commercial banks. It is only a matter of time before the bad loans catch up to them and they fall to. When Bank of America and JP Morgan Chase come crashing down, it will be Main street that will be in trouble. The government buy out of these bad debts will just put the burden on the tax payer. Should this bail-out occur there needs to be more oversight, complete transparency, equity for the government, and penalties for the banks that participate.

I recommend everyone to check Ron Paul and Ralph Nader on what they advise should be done about this crisis. Here are some videos that are worth watching.

Ron Paul:

Ralph Nader:

With these great opinions on what could be done to save our economy, how come Ralph Nader isn’t going to debate. Nader is on 45 States ballots. He’s a write in for all the other states but one, Oklahoma where you can’t write someone in. He is polling 9% in most polls.

How about Bob Barr a libertarian, America’s oldest third party. Those that are worried about Nader “taking away votes” should consider demanding that Bob Barr be included in the debates.  He is also on 45 State ballots and is polling well without any media coverage.

Here is what you can do to get these guys on the debates:

– AT&T (Main corporate sponsor of the first debate) 210-821-4105
Jim Lehrer (Moderator for First Debate) 703-998-2138
Commission on Presidential Debates 202-872-1020

– Call Barack Obama at 866-675-2008.
Hit 6 to speak with a campaign volunteer.

– Call John McCain at (703) 418-2008.
Hit 2 or 3 to speak with a campaign volunteer,
6 to leave a message in the general campaign voice mailbox.

– Email the executive director of the Commission on Presidential Debates.
E-mail Janet Brown jb@debates.org,


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