Bill Clinton - Al Gore and the Glass Seagall Repeal: Did the Democrats Crash the World Economy?

Barry Artiste Op/Ed

(Photo Inset) Then President Bill Clinton, smiling with Greenspan and Bankers and Wall Street as he signs back in the Glass Seagall Repeal Act.

Since I took a bath on the Stock Market recently as most the world did when they count on the US economy as a benchmark in Economic stability.

I started to do some research into why it all went into the toilet. What I found out surprised even me. I wanted to know more behind the subprime crash and the downturn in the current stock market crash the world is experiencing today.

I wanted to know who was responsible in all this, cause let’s face it, it is not like this was not an all of a sudden occurrence.

Many Americans in this election season will be comforted to know, Then President Bill Clinton, and Vice President Al Gore, both under the Democrats, were pushed and cajoled and got Greenspan, who was the United States Money Man, to hop onboard to sign off the GlassSteagall repeal (Resolution 10) authourizing Banks to get into the Speculative market, signing a Bill into Law to allow Banks and the Stock Market to be bestest pals.

Problem is, a similar scheme was tried in the early 1900s whereby people could buy stocks with little or no money down speculating on the world stock market.

This pyramid scheme resulted in a stock market crash around 1904 and the World Disaster Stock Crash of 1929 or Black Thursday.

An excerpt of the 1929 crash and the resulting investigation thoroughly analyzed why the economy was unsound in 1929.

America in the 1920s had corporate structures that encouraged frauds, imposters, grafters and swindlers.

It was a “flood tide of corporate larceny,” wrote Galbraith. The banking system was inherently weak — when one bank failed, the assets of other banks were immediately frozen, leading to investor panic and a domino effect of bank failures.

Lastly, the idea of using deficit spending to jump-start the economy had not yet been accepted. President Hoover’s advisors were urging him to balance the budget instead of spending more money to relieve a distressed economy or reducing taxes to alleviate the drop in wages.

Wow, doesn’t this sound real familiar to what is happening today in 2008?

In the 1990s under then President Bill Clinton, when the investment industry pressured Bill Clinton to allow Investment houses to get their investors, who by an large as Investors were to say the least not very investment savy and bought buy securities of companies which the banks and the Investment houses were aligned with.

This way both the investment house and whoever the securities institution could collect huge commissions, all off the backs of the unsuspecting investor who put his trust and money into this unethical practice.

Guess Bill Clinton was not adverse to sticking it just to Monica with Cohibas, but to the American Public as well.

Speculators smelling an opportunity would buy default insurance on these investments made by others, in the hopes if investors defaulted the Speculators could collect BIG TIME.

Sort of like buying Life Insurance on your Elderly Neighbour, knowing he will most likely die soon. This resulted in a run or opportunity for both the stock exchange, Speculators, Banks, Investment Houses, who along with compounded by income tax evasion on Bonuses and Insurmountable Earnings by investment bankers.

The Horrific Ethics displayed by these Investment Houses and Banks to con their depositors and investors to use their Nudge, Nudge, Wink, Wink, affiliate security and investment advisors, has resulting in the quandary the World Financial Markets are currently in.

Perhaps something to think about come this election time, there is a reason why the Democvratic symbol is a “Jackass”!

Many blamed the Republicans and George Bush, when in fact it was the democrats who initiated it all along. Boy, isn’t that a “Kick in the proverbial Nuts” or as Holier than Thou Al Gore would say in part an Economic “Inconvenient Truth” as History repeats itself all over again.

Guess one never learns from past mistakes, or do they $ ????

Today (Photo Inset) the Asian Markets which has always been pretty stable took a real nosedive today,

I would provide all the links to my research on this, but I tell it would fill a half page of links, so I will post the link below on the Glass Seagall Repeal which explains it in the nutshell http://en.wikipedia.org/wiki/Glass-Steagall_Act