Lubow has raised a very interesting point regarding the repeal of
Glass-Steagall.
Here's more for those inclined to read further about it:
..
..
Testimony of Robert Kuttner
Before the Committee on Financial Services
U.S. House of Representatives
Wa****ngton, D.C.
October 2, 2007
- excerpt from page 9 -
"It no longer works to assert that all innovations, by definition, are
good for markets or markets wouldn't invent them. We just tested that
proposition in the sub-prime crisis, and it failed."
"But which forms of credit derivatives, for example, truly make
markets more liquid and better able to withstand shocks, and which add
to the system's vulnerability."
http://www.house.gov/apps/list/hearing/financialsvcs_dem/testimony_-_kuttner.pdf
|
