Bill Moyers talks with former Citigroup Chairman John Reed about his role in bringing down the Glass-Steagall Act. I urge you to take some time and listen to this interview. It’s very interesting and revealing about the full scope of the problems within our financial system. This is the part that I think really sums it up:
I used to tell my kids, “Why do you think a car has brakes?” And they all would say, “To stop.” And I’d say, “No, a car has brakes so that you can drive fast. If you got into a car that had no brakes and you knew it, how fast do you think you would drive? You wouldn’t drive very fast at all.” And that’s the same reason we have rules. You want the private sector to be free to be creative and exuberant and whatever, within a framework, okay?
Indeed, having a well crafted framework of rules that promotes balance and fairness would be highly welcomed. Why Congress hasn’t done this already is beyond me.
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