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re: #170 Anymouse
Meanwhile, Elizabeth Warren grilled Steve Mnuchin over a bizarre statement.
Mnuchin said the administration supports a 21st Century Glass-Steagall Act, but firmly opposes separating investment and commercial banks.
Senator Warren asked him what he thought the Glass-Steagall Act was about, since that was the centrepiece of the original legislation.
The 2016 Republican Party Platform had this plank:
Of course Steve Mnuchin could be angling for a definition of “high-risk investment” not being the same as investment banking. Alternatively, the Treasury Secretary thinks we’re as dumb as much of Trump’s cabinet. On the third hand, the GOP could have just been lying to take in a few gullible voters.
Do recall that Glass-Steagall was repealed under Clinton…
But it was the totally lax regulatory climate under Bush that allowed things to overheat and collapse.
As long as home mortgages are (indirectly) subsidized by mortgage interest tax deductions and federal housing loan guarantees, that money should not be allowed to be used as collateral for speculative purposes; it distorts the market and leads to unsustainable bubbles.
