Saturday, June 17, 2017

The Banking Reforms - Post Depression



Among the biggest reforms made during the depression was the Glass Steagall Act, which separated banks from investment service corporations.  In other words, Chase did the banking, JP Morgan did the investing and they could not combine their assets.

The 1980's saw a change.



In 2000 we had the "DotCom" crash.



By the time we reached 2008, there was a lot of ways banking and investing corporations (which are now combined) were using creating accounting to make their balance sheets pass the audits.








Yes, economic crashes are cyclical, however the severity and frequency wasn't there in the 40's, 50's and even much of the 60's.  With cultures changing and clashing between the generations in the late 60's and into the 70's, this was when you saw gas shortages and issues with the Middle East impacting the lives of average Americans.

Did Glass Steagall work?

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