A real expert, former governor of the Bank of England, no less, is saying we are in for another financial crisis. Why? Because there's been no reform in banking, and the same practices have now placed us in deeper jeopardy.
Some are calling for a form of the Glass-Steagall Act of 1933 (USA) to be effected everywhere as protection for property owners. Glass-Steagall basically separated commercial and investment banking. Here's something on that act : https://berniesanders.com/yes-glass-steagall-matters-here-are-5-reasons-why/. Moreover, if Bernie Sanders has made it a big point of argument with Hillary Clinton, it has to be important.
So if Glass-Steagall was implemented in 1933 for protection of property owners, why did the GFC crash of 2008 hit the USA so badly? Because the act was repealed in 1999. And as soon as it was repealed the banks started venturing into the territory it had banned. It has been argued widely whether the removal of this safe guard was responsible for the 2000/2001 crash and the 2008 GFC. Lots of people make lots of noises, and there are vested interests involved and people that would prefer not to go to jail! Looking back tends to being those kind of tensions into play.
Looking forward, it's interesting to see some very prominent people arguing for implementing of Glass-Steagall type legislation very soon to minimize chances of another crash ; and certainly to try and straighten up the juggernaut that seems bound for one right now.
Mervyn King, former Governor of the Bank of England, is one that has started before it's necessary; and he's now soften a book starting it's really important. See https://www.theguardian.com/business/2016/feb/28/mervyn-king-new-financial-crisis-is-certain-without-reform-of-banks.
Looking at Australia, it's interesting that we often throw out the baby with the bathwater when someone looks or sounds a bit different. All it takes is the mainstream media (obedient to their masters) to cast doubt on someone, and we relegate them to the Crazy Basket. Such is the fate of Lyndon LaRouche, who had repeatedly argued the vital importance of 'physical economy'; ignoring inflationary or speculative prices, and implementation of Glass-Steagall. He's been called a nutter and a dinosaur many times. But he's been right an awful lot. Such also is the fate of the CEC (Citizens' Electoral Council) in Australia, who adhere to much of LaRouche's teachings. Craig Isherwood, leader and front man of the CEC, may not be the smooth tongued Barack Obama of Australia, but he has presented LaRouche's arguments and some of the CEC's own ideas reasonably effectively. He is of course, much maligned my the press and the incumbent political establishment.
I hadn't looked at a CEC video for some time. I happened to do so today. It's the 3rd March 2016 report. You can find it on YouTube: https://youtu.be/tuZR5iRJTHs. They were talking about Glass-Steagall and the housing bubble, which is partly due to the Chinese Government's massive investment in Australian property.
If you've heard of CEC and been told they are incompetent, lunatics or anything else defamatory, maybe it's time to look again. They may not be right about everything, but they have been playing from the same songbook for a long time now, and some very senior banking figures are starting to say the same things. Even their long-stated vision for a high velocity train sounds more plausible given Tesla & Elon Musk's progress overseas.
No matter what you think of the CEC's ideas in totality, if you want your kids to own a home ; of even if you want to be more certain you can own your home; and that the average Aussie won't be robbed of theirs, the CEC is perhaps a voice that should be aired now in Australian politics. Particularly when none else is floating a few of the very important matters that are part of their platform.
Is be pleased to receive comments on this post, and I'll give my readers the benefit of the doubt that they are capable of expressing themselves appropriately, without rudeness or malice, and with a degree of respect and intelligence.
