1999 repeal of Glass-Steagall drove America’s debt and securities explosion
Evidence
Most notably, Reagan-appointed banking regulators started to give non- finance firms permission to engage in financial activities but exempted them from the scope of regulatory agencies. Further financial deregulation proceeded through the 1990s, culminating in the 1999 Financial Services Modernization Act, which scrapped the only remaining prohibitions in the 1933 Glass-Steagall Act. What ensued in the last quarter of 20th century was an explosion of government, corporate, and household debt and an everexpanding securities market. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 40
Categorization
- XREF: connects to: The 1999 repeal of Glass-Steagall enabled the 2008 crisis; Deregulation of thrift deposits caused the S&L crisis and later crash; The sovereign debt crisis is a transmuted and camouflaged banking crisis — Mark Blyth, Austerity: The History of a Dangerous…, 35 (+1 more)
Related
- Deregulation let non-finance firms pursue financial activities, fueling debt expansion (similarity 0.84)
- A bipartisan deregulatory wave dismantled US financial separation statutes (similarity 0.83)
- The 1930s Glass-Steagall separation was simpler than modern bespoke rules (similarity 0.82)
- Legislative deregulation drove the US financial sector’s postwar expansion (similarity 0.80)
- Glass-Steagall repeal broadened official support for reckless speculation (similarity 0.80)
- Deregulation in the 1980s pushed corporations to bypass banks entirely (similarity 0.78)
Broader Connections
- The 1999 repeal of Glass-Steagall enabled the 2008 crisis
#expands(0.95) - Deregulation of thrift deposits caused the S&L crisis and later crash
#corroborates(0.80) - The 1930s Glass-Steagall separation was simpler than modern bespoke rules
#complicates(0.75) — Albert Bandura, Moral Disengagement, 1547 - The sovereign debt crisis is a transmuted and camouflaged banking crisis
#exemplifies(0.72) — Mark Blyth, Austerity, 35