The Roots of Instability

A wonderful piece by Joe Nocera on the passage in 1933 of the Glass-Steagal Act that split banking in two and helped maintain banking stability for the next 70 years.  When the history of this crisis is written the repeal of the bill in 2000 will rightfully be understood as the primary policy change to facilitate the collapse. By allowing banks to use deposits, federal insured by the government, to invest in various contrived forms of securities like credit default swaps.  Remarkably and despite the best efforts of organisations like the Roosevelt Institute in conjuntion with strong historical proof, a return to this cornerstone of finacial stability is not even under consideration.  With the net effect of allowing banks to bet on what ever their "genius" conjures up will provide for the greatest return and generally inflating the price at your expense.  Where else would their profits come from?