Laws, Not Regulatory Agencies, Create a Stable Economy

The Dodd bill does not have sufficient strength to effectively rein in the greedy overweening
tendencies of the big banks. Most of the current suggestions and proposals only modestly curtail the negative propensities which brought us to the Great Recession of 2008-2009. The bill leaves
reform up to regulatory agency control, a weak and largely ineffective solution. Where were the SEC and the FTC when some of the more recent outrages occurred?

But I have a simple solution: Bring back Glass Steagall! From the inception of the two acts during
FDR's administration until the Clinton era, when Glass Steagall was allowed to lapse, we enjoyed
decades of relatively stable economic growth. The recessions occurring then were milder and
were not world-wide in import. Banks were not permitted to house investment, loan and commercial activities under one proprietary roof, BY LAW.

No agency or committee will be able to control Wall Street and the largest banks: the only
practical enforcement possible is BY LAW....no meandering discussions, no delaying tactics, no blind eyes applied, just acts which become law.

Glass Steagall was well thought out, extremely effective. Despite hedge funds, derivatives, and
all the other modern financial bells and whistles ("instruments"), the world hasn't changed very much. Greed and hubris remain a permanent part of the human condition, requiring a firm hand.

Glass Steagall is the right firm hand. History has proved it; why don't we ever learn?

George Santayana must be spinning in his grave.