Nader warned us in 2000

In January 2000, Ralph Nader predicted disaster:

Never underestimate the ability of Congress to repeat its mistakes. A decade ago, after it gambled and lost on deregulation, Congress was forced to launch a $500 billion taxpayer-financed bailout of the savings and loan industry. Congress has just rolled the deregulation dice again. This time the outcome may be even more costly.

Congress and the White House have come up with the granddaddy of all financial deregulation, the “Financial Services Modernization Act,” which whipped out the Glass-Steagall Act of 1933 and removed the major restrictions of the Bank Holding Company Act of 1956. In so doing, Congress and Clinton have opened the door for banks, securities firms, insurance companies, and in some cases nonfinancial corporations to combine into a handful of giant conglomerates.

These conglomerates will be the financial equivalent of nuclear bombs. The explosion of even one could have a disastrous impact not only on the U.S. economy but on financial systems around the world.

Posted by James on Thursday, February 19, 2009