Hitz

An Autopsy of the Glass-Steagall Act

I agree that commercial banking and investment banking should be differentiated as one IB puts on risk the money of depositholders wherein the profit on the risk is passed on to shareholders while in case of losses, the depositholders suffer. The differentiation will not create "too big to fail" institutions.

Thoughts on Future Financial Regulation

"d. Stimulate the economy so that more tax can be raised. This can be achieved by starting a war, Quantitative Easing or cutting interest rates. War tends to be unpopular with the majority because it is expensive and citizens get killed (others do get rich). "

This points makes a very interesting statement. Interest rates already near zero, QE already implemented. Next thing they want will be a war (not in immediate future but a few years down the lane), similar to 1990's Gulf War after the 1980's crash.

God save us all!!!

Dollar-Gold Relationship Inspires 'New Economic Theories'

What does everybody feel about gold and dollar relationship after yesterday's move? Is this relation back to the old times or will we see divergence again of gold and $ relationship?