As promised, I will finish up some old business. Addressing Clinton’s responsibility in passing one of the worst laws in decades — the Financial Services Modernization Act — is meant to address progressives in general.
There are two reasons I ever brought it up. The first is, it irked me then and still about a Great Recession that shouldn’t have happened at all. The second is, it’s important to hold history higher as a guide for the future rather than pure progression. Relying on a stack of facts (along with a progressive telling us the old law was obsolete) wasn’t good enough for passing that new law, as recent history now shows it let us down.
If you read Wikipedia’s commentary on this subject (search Great Recession, also FSMA, also Glass-Stegall: aftermath of repeal), there’s a lot of dialogue with all the various reasons and excuses why the financial system collapsed. What I found through all that dry reading is many of those things were directly or indirectly affected by FSMA. The investment and financial systems weren’t perfect to start with, but FSMA caused a domino effect, and that’s my (and other’s) interpretation.
I am aware Republicans controlled Congress at the time (1999). I’m also aware it was a bipartisan passage of the act. But I’m acutely aware it was a progressive who signed it into law. Being fair, I blame all of them for this. However, knowing progressives have a predilection for experimenting with our country with their stacks of facts and theories (aka truth over lies), they couldn’t resist some more "change." In this case they could’ve been our safety net on this issue, but again blew an opportunity with their conflicting ideals.
Why does it take an average American to look at the original Glass-Stegall Act and know that it is (was) just as viable today as it was in 1933? Commerce really doesn’t change — it’s still only math, dollars and people. I defend capitalism, but a good balance was interrupted. Now the Federal Reserve regulates (oversees) things the Glass-Stegall Act used to. What really progressed? This is an example of why to watch progressives with a wary eye. Are you ready for them to make some more laws for us?
ROBERT W. BONNEY