Of course he is right as any moran who wishes to explore the historic record can see. Bankers hated it because it made it impossible to gamble with depositors money and by extension with the USA treasury. That is why they arranged for its removal as Clinton left office. When i saw that notice I personally knew that the time bomb had been set for about eight years down the road. That was the historic cycle that existed up to 1929 when it went beyond been fixable.
It then was all possible because brokers could be bankers and there is no more conflicting mind sets. Would you retain a farmer to gamble your money? Or a gambler to operate your farm. We are talking about that level of economic stupidity.
In 1933 they enacted Glass Steagall to separate the two and we have since avoided financial collapses of any kind not to be confused with a market correction generating little financial risk.
Improvements were made in terms of banking services and other parts of the industry that finally emerged with proper computerization as a healthy industry. Add in the reforms producing a stable four percent growth implimented by Reagan which are somewhat too subtle to discuss here and we come to 1998. They then threw out the rule book that kept it stable and had the right people doing the right job.
That led directly to brokers creating optimistic financial products to sell into the earned trust of the financial world and that was a Ponzi scheme by any other name that crushed the whole financial system in 2008. Let me qualify that. The system actually remained intact. It is just that the massive capital losses were offloaded to the Federal Reserve and us.
They will surely want to do this again off course.