Iceland is taking the lead when it comes to breaking up the big banks

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Icelandic lawmakers are pushing legislation to force banks to split up their business – separating commercial banking practices from risky investment banking practices. That’s similar to what the Glass-Steagall Act of 1933 did in this country – creating an unprecedented 5 decades of economic growth without a serious financial crash.

That act was officially repealed in 1999, setting up the financial disaster of 20-07 and 20-08. If Iceland succeeds in breaking up its big banks, then according to Bloomberg News, it will be the first western nation since the global economic crisis to take these necessary steps to turn banking back into the boring, useful, and safe industry it used to be. Let’s hope policy makers in the United States are paying attention.

Thom Hartmann Administrator's picture
Thom Hartmann A...
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To reinstate the original Glass Steagall bill— Marcy Kaptur's HR1489 is sitting in committee with 80 co-sponsors (20 of whom signed on in the last few weeks).

People can apply some real pressure on the Congress-people who are in session throughout the usual summer recess, to bring HR1489 out of committee and force it through immediately, and before Europe plunges into the abyss, followed promptly by the United States, and then China and India, who are still producing for a market that will no longer exist.

Karolina's picture
Karolina
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Nov. 3, 2011 6:45 pm

Since when does congress listen to voters? It will take another full scale depression, and maybe a war or two.

douglaslee's picture
douglaslee
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Jul. 31, 2007 3:01 pm
Quote douglaslee:Since when does congress listen to voters? It will take another full scale depression, and maybe a war or two.

I disagree. The House last week voted against Congress taking their usual August recess, because they are aware that we are already in a crisis that is about to get even worse. Passing Glass-Steagall now would insure that at least the first step to recovery would be in place when the chaos hits.

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Karolina
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The other way we're subsidizing Walmart...

Most of us know how taxpayers subsidize Walmart's low wages with billions of dollars in Medicaid, food stamps, and other financial assistance for workers. But, did you know that we're also subsidizing the retail giant by paying the cost of their environmental destruction.

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