Phil Gramm Owes America $2 Trillion

[seemslikeadream]

http://www.buzzflash.com/articles/analysis/696

A BUZZFLASH NEWS ANALYSIS
by Meg White

In tough times such as these, it can be comforting to slip into nostalgia and fantasy, which has got me thinking about Congress in late 1999. Lawmakers were falling all over themselves praising the passage of the landmark Gramm-Leach-Bliley Act, which effectively repealed much of the Glass-Steagall regulations on financial institutions coming out of The Great Depression.

Former Sen. Phil Gramm (R-TX), the main architect of the legislation, expressed fatherly pride in the bill in his floor speech at the time (recently brought to our attention by Tom Wieliczka of Windsor Locks, CT):

"The question is, 'How will it look 50 years from now when it has gone from infancy to maturity?' Obviously, after setting out a dramatic change in public policy, it is fair to set out a test for determining its success," Gramm said. "Ultimately, the final judge of the bill is history. Ultimately, as you look at the bill, you have to ask yourself, 'Will people in the future be trying to repeal it, as we are here today trying to repeal -- and hopefully repealing -- Glass-Steagall?' I think the answer will be no. I think it will be no because we are doing something very different from Glass-Steagall. Glass-Steagall, in the midst of the Great Depression, thought government was the answer. In this period of economic growth and prosperity, we believe freedom is the answer."

Thankfully, we didn't have to wait 50 years to find out what history would say about Gramm's "dramatic change in public policy." It only took a decade for our financial industry to show the weakness of his extremist deregulation argument.

The fantasy ingredient of my coping mechanism cocktail has to do with who the media and the American people could have listened to at the time. Reading The New York Times article published when the act passed, you get the idea that the people who were opposed to this legislation were just downers that didn't want banks to make money:

[rurallib]

1. I think Leach and Bliley owe a share also

I've heard Leach defend this bill. I think he deserves some of the blame.

[annabanana]

2. Gramm is a theif. . . n/t

[BR_Parkway]

3. How could anyone think a banking bill sponsored by a "Leach" would

be good for anyone but the bankers?

[WI_DEM]

4. And as critical as McCain is about Obama's program, remember he had Gramm as one of his key economic

advisors.

[Canuckistanian]

5. He doesn't have to pay it all at once

Maybe a "payment plan" could be arranged. You know, seize all his possessions, garnish his wages.

I'm sure his friends could lend a helping hand, too.

[glitch]

6. So far.

It ain't over yet.

[Wildewolfe]

7. That should be "No Sense" not "No Cents"

[SnoopDog]

8. Add President Clinton to the discussion... He signed the Bills....

[dkofos]

9. And his head on a pike.

[seemslikeadream]

13. and shake him till all our money falls out of his pockets

[terisan]

10. as well as Kerry and Biden and every Democratic rep who spoke and voted in favor.

[Captain Hilts]

11. Don't forget Wendy Gramm was a honcho at Enron. nt

[Catshrink]

12. Phil Gramm to America: Oops, my bad.

Just like W, walks away without a scratch.