Why did we not have a Great Recession or Great Depression from 1933 until 2006 and 2007 and after?
Because they wisely created the Glass Steagle Act to prevent another one. However, then Reagan and Clinton and both Bushes deactivated it and Voila we had the Great Recession as a direct result.
Even though it is incredibly inadequate, Dodd-Frank was all we have left to protect us. If the Senate ratifies what the House just did just expect another Great Recession or a Great Depression 10 to 25 times worse than the last one. By the way, if another one happens the only people okay were in non-taxable municipal bonds during the Great Depression. However, now this might not be the case in the next one because of cities potentially going bankrupt because pensions through cities are now completely unsustainable economically long term but legally impossible to get out of for cities. So, it is relatively inevitable that more cities go bankrupt. So, if you buy non-taxable muni bonds be sure to get some sort of insurance like treasury bonds they give you for insurance so you don't lose your principal if the city or municipality goes bankrupt during your investment period.
- The Glass–Steagall legislation describes four provisions of the U.S. Banking Act of 1933 separating commercial and investment banking. The article 1933 ...
- An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business.
- Nov 16, 2015 ... In 1933, in the wake of the 1929 stock market crash and during a nationwide ... Established in 1933 and repealed in 1999, the Glass-Steagall Act had good intentions but mixed results.
- The Glass-Steagall Act effectively separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation, among other ...begin quote from:June 8 (UPI) --The House on Thursday passed a bill to eliminate some of the reform regulations of the Dodd-Frank Act, the sweeping law put into place after the …
House passes bill to kill safeguard regulations in Dodd-Frank Act
House passes bill to kill safeguard regulations in Dodd-Frank Act
The U.S. House on Thursday passed legislation to eliminate certain provisions in the Dodd-Frank regulatory law enacted by former President Barack Obama that were imposed to provide safeguards against another financial crisis. Republicans say they are harmful to the economy. File Photo by John Angelillo/UPI| License PhotoJune 8 (UPI) -- The House on Thursday passed a bill to eliminate some of the reform regulations of the Dodd-Frank Act, the sweeping law put into place after the financial crisis.
House Resolution 10, or the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act of 2017, passed by a vote of 233-186 in the lower chamber Thursday afternoon. Eleven representatives did not vote.
Republican supporters of the bill claim it stifles small business and the domestic economy with too much regulation. Opponents chide the proposal as the "Wrong Choice Act" and say it's a handout to Wall Street and a disservice to normal investors.
The regulations of Dodd-Frank were enacted in 2010 by former President Barack Obama as a sweeping effort to put in place certain regulations that make another financial crisis less likely.ADVERTISING
"The Financial Choice Act is a jobs bill," House Speaker Paul Ryan said. "It is why we were sent here, to look out for the people who work hard and do the right thing."
Though it passed the House Thursday, some lawmakers and experts don't believe it will be approved in its current form by the Senate, where the Republicans' majority is far slimmer. They say some provisions of the proposal, though, could make it through.
Thursday's vote went nearly straight down the House partisan line. No Democrats voted for the bill and just one Republican, Rep. Walter Jones, R-N.C., voted against it.
The CHOICE Act would shield some financial institutions from Dodd-Frank restrictions that limit risk-taking -- which was a major factor in the mortgage industry collapse that preceded the financial crisis and Great Recession. It would also change the way federal law deals with failing financial institutions, which some critics say again supports a "too big to fail" approach.
The bill would also weaken the Consumer Financial Protection Bureau and scrap the Labor Department's fiduciary rule that requires brokers to act in the best interest of their clients when giving investment advice.
"Instead of protecting consumers, Republicans choose to help those who try to cheat consumers," House Minority Leader Nancy Pelosi said Thursday. "Dems enacted the strongest consumer financial protections in history. We mustn't let the GOP roll back these safeguards."
Trump's administration has taken multiple steps since January targeting regulations contained in Dodd-Frank -- including a resolution in February to scrap another Dodd-Frank regulation intended to increase transparency and reduce corruption.
The first new parts of the 2010 law, which were completed last year under Obama's administration, are set to take effect Friday.
The Congressional Budget Office said recently that the CHOICE Act would reduce federal deficits by $24.1 billion over the next decade. The CBO warned, though, that the estimates are not definitive because it's difficult to predict when such a large financial firm might fail next.
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