There is a fourth camp for bank reform proposals: nationalize the privately owned and operated Federal Reserve, as well as reinstating the Glass-Steagall Act.
If it wasn't clear before, it is certainly clear now that the Federal Reserve is run by and for the banks, as the Federal Reserve has doled out, bought and backstopped over $10 trillion for the banks. All without Congressional approval.
Yes, it's so radical that Canada nationalized their Central Bank in 1936. Yet today Canada's banks are some of the best-run in the world, according to the Bank of International Settlements.
In fact, the White House/Frank proposal will make the situation much worse. Read : "Conservatives and Liberals Agree: Proposed Bank Oversight Bill Will Make Things Worse" at Naked Capitalism.
The Nation and other liberal and progressive organizations are being too accommodative in their discussion on this issue. Since when do you bargain with powerful players like the banking and securities industry by laying out your final position before the bargaining has even started? The Nation should lay out bold, even controversial proposals. If they are never proposed, they never see the light of day--and therefore there is no alternate scenario to the obviously failed status quo.
Oct 29 2009 - 4:32pm