focused on helping people during this crisis and that's what congress needs to do years ago the glass steagall act was passed during the great depression and repealed under president clinton for those who don't know what was glass the goal and how might the repeal of affect the a pommy mal in the face of the current crisis. so glass steagall is one of the important new uniforms and it comes into place in 133 and it lasts until 1991 glass steagall did is it reduced risk throughout the financial system and this is because it said that a commercial bank so the bank that you or i go to to have our checking account or seem to count they can't then take that money and start gambling with it on wall street doing what's called investment banking once glass steagall was repealed now you can have these financial institutions that they do commercial banking they do investment banking they're selling insurance and this means that these financial corporations are also getting bigger and bigger and at that point to become an actual systemic risk because if they go down they can maybe take down the whole sys

1991 glass steagall did is it reduced risk throughout the financial system and this is because it said that a commercial bank so the bank that you or i go to to have our checking account or seem to count they can't then take that money and start gambling with it on wall street doing what's called investment banking once glass steagall was repealed now you can have these financial institutions that they do commercial banking they do investment banking they're selling insurance and this means that these financial corporations are also getting bigger and bigger and at that point they become an actual systemic risk because if they go down they can maybe take down the whole system with them this is why they're called too big to fail and right now we're in another you know serious economic crisis and during times like this the financial system can run into problems too and so it's a legitimate concern when you have too big to fail institutions but they can cause ripple effects that will disrupt the entire economy and they will need a bailout a bailout like they got in 2008 so we really need

that toxic risk they are taking for their pension fund your members and then he also got rid of glass steagall by helping to pass the gram leach bliley act which removed the separation between investment and commercial banks so this is that guy that biden is now bringing in to help with the economic recovery like any ghoul would want to help with any recovery they feast of corpses this was an attempt to keep a wall between the most reckless of speculators on wall street and the banks that hold people's money was these laws that were in place for a long long time and then he was able to get rid of those laws and get rid of those barriers which opened the floodgates of the predatory and reckless speculators into the banking system they made many many a one off the charts risky bets that last which then resulted in huge bailout and the destruction of the economy the glass steagall had been in place after the crash of 29 put another barrier between the worst elements and finance the most reckless speculators and your money your savings he decided no we want to be able to use people's savings as ou

and the destruction of the economy the glass steagall had been in place after the crash of 29 put another barrier between the worst elements and finance the most reckless speculators and your money your savings he decided no we want to be able to use people's savings as our collateral to engage in a wild speculation like long term capital management would never have existed and that and the destruction of long term capital management the destruction of enron enron's evisceration and disappearance world com disappearing in a heartbeat that's all thanks to larry summers getting rid of all barriers between the worst predatory financier earth and your money and of course the response by other people like nugent treasury secretary who is kind of a disciple of larry suppers is to simply again pay no attention to the rule of law and to just take out an enormous pitchfork and shovel money into their friends' pockets as fast as possible you mention and ron and of course larry summers was friends with those sort of guys can lay all these big brains member they believe they're so smart and so much b

financialization that happened since the commodity futures modernization act of 2000 and the glass steagall repeal and 1909 basically a continuation of the last episode where we talked about the bankers get all the reward everybody else gets the risks this is part of that is that we've had because society ordinary people take all the risk that we've had this offloading of everything on to the u.s. government and nobody seems to have realized that you as we are close to what the soviet union was like or china as we say you know that they're communist now let's call what is marxist communism you know bernie sanders is a socialist he would be too liberal compared to the communists the communism that's being put forward now i mean you talk about 60 percent owned by the government owned student loans they don't 90 percent of student loans they pay sick over 60 percent of all health care are spent in the united states 3 trillion 4 trillion a year most of it comes from medicare or medicaid so they're the ones paying for that the government is already paying for all these other schmucks like us and

than individuals are able to galvanize and as a result money goes from taxpayers and with the glass-steagallct in 1999 and from 1933 so typically with the taxpaying public and voters of speculation that banks could do. they could choose to bet on all sorts of stuff but it's on them, on their shareholders and private partners, it wasn't on the government or people. that is 1999. with people's deposits , people's cash, people's mortgages into institutions and that do badly with it and to come to the government for help. but the fact they have all these deposits to say we have them. atm machines will not work they will not get their money back unless you give us these other things. the additional way from taking money from depositors and taxpayers that they influence the policy that allowed them to have those deposits. on multiple levels they are extracting by their influence when things go wrong and through rules surrounding businesses from taxpayers. >>host: there is a tweet can you explain how someone so brilliant and economically astute, you proposes an economic system that always fails tha

taxpayers to benefit them and not just when there's a crisis but even from the standpoint of the glass-steagallact which was in 1999 it was to protect the voters from any kind of weird products and speculation banks could do. could choose but if they lost those, is something, on their shareholders, their private partners, however they were structured. it wasn't on people. i was repealed in 1999. they had this merging of people's deposits, people's cash and institutions that also could you all sorts of stuff with the, do badly but the infant from to the government for help. the fact that they had all of these deposits and they could say well, we have them, atm machines on board to work, people get their money back in this crisis unless you give us all these other things. that meant a different way of taking money from the taxpayers because they influence the policy that allowed them to have all the deposits. on multiple levels, they are extracting by their influence and when things go wrong and through rules surrounding their businesses from taxpayers their own pockets. >> walsh tweets, can you