what are the questions that has been asking others ass back in
in the thirties I mean for for three years after the Great Depression 1929
the by and large the efforts to
to us solve the Great Depression by Herbert Hoover and and a.m.
mister morgan as I recall is secretary treasury
word to you to be hands-off
basically the health liquidate everything I was Morgans famous the
statement as I recall and a
as opposed to regulating things and FDR came in and started regulating seriously
for example glass steagle telling banks you beat you gotta make a choice
you can either be a gambling bank like merrill lynch's to be
I basically brokerage house or you can be a checkbook bank
commercial bank and rate mortgages mmm
keep people's money in their checkbooks but you can be both
we deregulated that 1999 and I
what was in that wonderful so
a what we do how do we you know how did we get here and how do we get
outta here bill Fresno has some thoughts on this is an adjunct scholar at the
Competitive Enterprise Institute CE I dot org
so and make the case it seems to me that we need more regulation
um II in our are gas oil companies are dumping their waste in our air and then
on to pay for it our banks are
are are robbing us blind and and you know there is not much can be done about
it
um I don't see where where deregulation is the solution to any of this
we need to do something different I'm are I'm with you on that the economy is
a is a mess right now
head and no one can see a pass out but if the banks for a while we have the
worst
for possible worlds we have totally out of control
too big to fail banks that are million again like this as anybody who pays any
attention to the derivatives
cascade these folks have built should be terrified
because they could come down again just like he did in 2008 on fact I think I
will
and yeah out there
they're supposedly being regulated by folks in Washington who think they can
keep up with these messages universe that there's no chance that they can
no i i fck with you but see they would never have been able to do this i mean
the the diff
the derivatives market the worldwide derivatives market on pretty much didn't
exist
in 1999 and watch a small part of it there was there was about an 80 trillion
dollar market
arm what most if it went through with the Chicago Board a traitor other
regulated and transparent markets
it was the Kaman it was the Commodity Futures Modernization Act promoted by
phil gramm
it was proposed by Ken Lay and and Chris phil gramm's wife when he was on Ken's
board of directors and Ron
on you know can lay wanted to get into the business of trading in derivatives
bomb a.m. energy derivatives and he also wanted open open is on bank and see you
had the Commodity Futures Modernization Act the phil gramm championed
and the the gramm-leach-bliley which and a glass steagle
which phil gramm championed now a granite Bill Clinton signed both of them
eagerly
but that deregulation I would argue is what
has caused the situation you just described shouldn't we be reregulate in
the bank's
blessed again let's look at what the best former regulation
is driving at a business so
so if we want if you wanna live in a world that has nationalization
right which which I will contend is important to the growth of the economy
its support for bringing I do business ist
you have to allow people to innovate but just like this other areas like
technology
is the innovators sale they need to go bankrupt their shareholders
items I'm with you d I'm way that we never should have bailed out the banks
totally agree people but isn't it time then to start applying the Sherman
Antitrust Act
I realize that's a regulation to but you know that's
basically how you prevent capitalism from turning into monopoly
we don't have a monopoly problem except in fact that that that that that the
that the government to set up organizations like Fannie Mae
10 you got five banks that have total assets equal to 65 percent of our GDP
that's that's not a monopoly
data too big to fail problem which is caused by the implied
a and I'm I'm agree with you is caused by the implied protection federal
government me try to take the protection that the federal government away from
the banks
bankers need to fail people need to know what their
it isn't that the isn't that yet if you could lose their money
yeah but isn't it isn't that the essence essence of dodd-frank
no dogfight just does just the opposite I phrase enshrines
no doubt frank has a mechanism for for dissolving banks
the you know when they when they fail rather than bailing them out it's built
right into its explicit language
it forbids bailing them out this is this is this is this is a texan
think that's going to happen if you look too how that's been changed monetary
policy
which is which fueling this whole thing might in fact its monetary policy that
she would both the too big to fail banks
fueled the mortgage crisis we had before and its commercial mortgage crisis
triggered had
have again this is working hand in hand with government involvement in the
banking business
if you try to embrace them in control them so how do we get the government out
of the banking business sir or away from it out what do we have just 30 seconds
bill what what's your solution
that so I question you have to have we get the government out the banking
business had a good
out monetary policy and has I we do up so that would
back still just like any other business tales when this to the public
when the gamble on successfully that's actually my question
what's the answer I think we have to be happy
start with the fam and we've got to get control of monetary policy of stock my
fridge
we've got a big draw this for the government the big banks
okay follow like I said I thought that dodd-frank did that I I guess I need to
learn more about that frank
okay bill for us up %uh thx collar the Competitive Enterprise Institute CE I
dot org bill thanks for dropping by today
thank you interesting conversation we'll be right back