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Gingrich Admits Deregulation Of Wall Street In The ’90s Was ‘Probably A Mistake’
[Quote]:
GINGRICH: Sure, there should be very decisive reforms. I think, in retrospect, repealing the Glass-Steagall Act was probably a mistake. We should probably reestablish dividing up the big banks into a banking function and an investment function and separating them out again.
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There’s an old saying which has been proved correct.
How long does it take for a politician to learn anything?
Three elections.
Coincidence or not? The financial markets were astonishingly stable for more than two decades, until the Glass-Steagall act was repealed in 1999. Immediately afterwards, one of the biggest stock market bubbles ever was pumped up, popped with a loud *bang* in 2000, lead to one of the worst bear markets ever until 2003, only to be followed by another gigantic bubble, which popped again in 2007, to cause again another horrible bear market, and now we have hopelessly indebted countries, rampant unemployment, unbelievable income inequality, and the financial markets are in a massively fragile state and can tumble every time.
The repeal of Glass-Steagall was *immediately* followed by more than a decade of financial chaos and turmoil.