Recedentia: Legatum sounds the retreat

Nice article from the UK Column.

Recedentia: Legatum sounds the retreat

One of the few articles that mentions the repeal of the Glass Steagal Act in 1999 as a major cause in this financial crisis. They knew exactly what they were doing and the consequences, since this was originally  brought in after the Great Depression, to prevent it happening again!

Another source  that mentions the Repeal of the Glass Steagal Act is the Centre for Research on Globalisation,  and a lecture by  Michel Chossudovsky.

The 1999 Financial Services Modernisation Act was pushed though by Phil Gram in the last year of Clinton administration. There was a key role for Larry Sommers chief economist at World Bank, appointed secretary of treasury. Today he is advisor to Obama at the White House. So, some of the people who were the cause of today’s crisis have been brought in to provide the solution!

The Glass Steagall Act was repealed by the 1999 financial services modernisation act. The Glass Steagall Act was a reform policy of banking /financial sectors to stop fraud and speculation in the market which lead to the 1929 crash. It separated the commercial banks from the merchant banks / stock brokerage companies. i.e. to keep the speculators away from the commercial banks…. Commercial banks which lend money to the real economy.

The Financial Services and Modernisation Act allowed the merging of these financial institutions – merging of commercial banks and stock brokerage firms e.g. Chase Manhatten Bank to JP Morgan chase

Money transferred to hedge funds escapes regulation… offshore. The system encourages money laundering , & money escapes taxation. Financial institutions are doing this on a very large scale. Black money/dirty money (eg drug trade). Narcotics economy is massive , serving powerful interests. Columbia & Afganisthan: War and economic interests merging. There has been a 35-fold increase in narcotics production in Afghanisthan since it was invaded.

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