“If a bank is too big to fail, it is too big to exist…”

(The two most recent “dropouts” from the presidential campaign are noted here.) Presidential candidate Sanders takes aim at Wall Street, Clinton in speech Reuters.com By Amanda Becker 1/5/16 U.S. Democratic presidential candidate Bernie Sanders warned on Tuesday that financial-sector greed … Continue reading

Hillary Clinton: How I’d Rein In Wall Street, Financial Sector and “Shadow Banking”

Hillary Clinton: How I’d Rein In Wall Street The New York Times By Hillary Clinton, Op-Ed Contributor 12/7/15 SEVEN years ago, the financial crisis sent our economy into a tailspin. Over five million people lost their homes. Nearly nine million … Continue reading

TWO CLINTONS. 41 YEARS. $3 BILLION.

A Washington Post investigation reveals how Bill and Hillary Clinton have methodically cultivated donors over 40 years, from Little Rock to Washington and then across the globe. Their fundraising methods have created a new blueprint for politicians and their donors.

The Washington Post
By Matea Gold, Tom Hamburger and Anu Narayanswamy
11/19/15

Over four decades of public life, Bill and Hillary Clinton have built an unrivaled global network of donors while pioneering fundraising techniques that have transformed modern politics and paved the way for them to potentially become the first husband and wife to win the White House.

The grand total raised for all of their political campaigns and their family’s charitable foundation reaches at least $3 billion, according to a Washington Post investigation.

Their fundraising haul, which began with $178,000 that Bill Clinton raised for his long-shot 1974 congressional bid, is on track to expand substantially with Hillary Clinton’s 2016 White House run, which has already drawn $110 million in support…
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Nov. 14th DEMOCRATIC DEBATE: Middle Class, College Tuition, RX Costs, Wall Street, Redistribution Of Wealth, Minimum Wage, Gun Safety…

By Russ Phillips At the Democratic Debate on November 14, 2015 there was discussion about Wall Street and financial institutions as well as redistribution of wealth and other topics. Some have been included in the partial transcript below. Some may … Continue reading

Bernie Sanders on media, Medicare, middle class, Iraq War, Keystone Pipeline…

(Yesterday Chuck Todd, moderator of NBC “Meet the Press,” interviewed, among others, presidential contender Bernie Sanders and the exchange follows. The transcript of the entire program is here. – Admin.) CHUCK TODD: Let me move to the other side of … Continue reading

The Great Depression: Bank Failures

(Presidential candidate Jim Webb ended his bid for the Democratic nomination yesterday as noted here. – Admin.)

By Russ Phillips

(Earlier postings: One and Two)

As mentioned yesterday, “Those who cannot remember the past are condemned to repeat it” (George Santayana) and it appears that many events in history repeat. This cyclical nature of history, in part, suggests the lack of mindfulness of the past and a lack of action to prevent its recurrence.

America’s banking system began to collapse in the early 1930s, in part, because so many commercial banks had speculated in stocks. After several prominent banks collapsed depositors rushed to withdraw funds from remaining banks. In the first two months of 1933 four thousand banks were forced out of business. Because accounts were not government-insured millions lost their life savings.

As a result of the Banking Act of 1933, bank deposits since have been insured by the Federal Deposit Insurance Corporation (FDIC). However, the Financial Crisis of 2007-2008 manifested itself in some ways very different from The Great Depression.  One significant factor was the housing market.

“The bursting of the U.S. (United States) housing bubble, which peaked in 2004, caused the values of securities tied to U.S.real estate pricing to plummet, damaging financial institutions globally. The financial crisis was triggered by a complex interplay of policies that encouraged home ownership, providing easier access to loans for (lending) borrowers, overvaluation of bundled subprime mortgages based on the theory that housing prices would continue to escalate, questionable trading practices on behalf of both buyers and sellers, compensation structures that prioritize short-term deal flow over long-term value creation, and a lack of adequate capital holdings from banks and insurance companies to back the financial commitments they were making.” (Source)

This 2:18 video clip, “Worsening Crisis,” appears on the Franklin D. Roosevelt Presidential Library and Museum website as part of its “Virtual Tour.” BTW, this is an excellent website that gives great insight into our nation’s history during the Roosevelt Presidency of twelve years.

What caused the Great Depression?

By Russ Phillips

“Those who cannot remember the past are condemned to repeat it” (George Santayana) and it appears that many events in history repeat. This cyclical nature of history, in part, suggests the lack of mindfulness of the past and a lack of action to prevent its recurrence.

Two momentous events that can be instructive for the future are The Great Depression (1929-1939) and the Financial Crisis (2007-2008).

Several days ago I posted about the Glass-Steagall Banking Act that was referred to in the October 13, 2015 Democratic Debate as well as by Ben Carson on ABC “This Week” two days ago.

This 2:58 video clip, “What Caused the Great Depression,” appears on the Franklin D. Roosevelt Presidential Library and Museum website as part of its “Virtual Tour.” BTW, this is an excellent website that gives great insight into our nation’s history during the Roosevelt Presidency of twelve years.

“Shadow Banking” At Last Night’s Democratic Debate: Are We Paying Attention?

By Russ Phillips During last night’s Democratic debate reference was made to the Glass-Steagall Banking Act. This resonated with me due to the fact that recently I visited the Franklin D. Roosevelt Presidential Library and Museum and there was a display regarding … Continue reading