Posts filed under “Media”
Senators Elizabeth Warren and John McCain are introducing new legislation to “take the financial industry back to an era when there was a strict divide between traditional banking and speculative activities.”
I have a quote in the column:
“The act also kept banks that use federal deposit insurance out of potentially volatile Wall Street activities, like trading. As a result, problems at investment banks were less likely to infect regulated banks. Losses at the Wall Street operations of Citigroup and Bank of America weighed heavily on those banks during the 2008 crisis.
“For about 70 years, Glass-Steagall managed to keep the riskier, more damaging part of Wall Street away from what should be the boring, straightforward side of finance,” Barry L. Ritholtz, chief executive of FusionIQ, an asset management and research firm, said. “It was the height of stupidity repealing Glass-Steagall.”
The argument I made is summed up in this one paragraph:
“During the era of Glass-Steagall, there were no systemic banking crises like the one that occurred in 2008. The restrictions the bill put on the financial sector did not seem to do much wider harm. According to analysis of government gross domestic product statistics, the American economy grew an average of 4 percent a year from 1933 until 1999, when Glass-Steagall was in effect. Even some who championed repealing the act, like the former Citigroup chairman Sanford I. Weill, have since called for the breakup of the bank behemoths.”
As a more recent example, the 1987 crash never spilled over into the banking system. We had Glass Steagall to thank for that firebreak.
Senators Introduce Bill to Separate Trading Activities From Big Banks
NYT, July 11, 2013
I will be guest hosting with the lovely Trish Regan at Bloomberg TV from 3:00 pm to 4:00 pm on Street Smart. We will talk Barnes & Noble, NYSE take over or LIBOR, and the Bond Outflows. Should be lots of fun — Check it out at their live streamer on TV.
Yeah, this time it was my fault — in the midst of a long conversation about taking the emotions out of investing and making finance boring, I dropped a line about cat food tacos. So once again I am in the click bait headline machinery.
It looks something like this:
Have a plan.
Execute it faithfully.
Max out tax-deferred accounts.
Be an asset allocator.
Not exactly radical, but “Cat Food Tacos” will generate a lot more clicks than “invest boringly.”
Here’s the video:
Source: Ritholtz: You Can “Eat Cat Food Tacos In Retirement,” Or You Can Do This… (Yahoo Finance)
This discussion is about probabilities and investor psychology — not predictions.
Source: Yahoo Finance
Note: I understand getting heard above the clutter and attracting clicks and all, but this headline is rather different than what we actually discuss on the video above: