Stephen Roach: Global Downturn Just Getting Started

[Raz]

Re: One You Get Started . . .

Thanks Raz, for that concise review. I would argue in favor of breaking up giant corporations. When business concerns get as big as they are now, they run things, as we see in the leaked portions of the trans pacific partnership. If we keep them smaller the governments stay sovereign.

I somehow missed (or forgot?) this kind response of yours.

I agree with breaking up non-financial corporations when they become so large they threaten to monopolize any industry - it's the nationalization that frightens me. As for financial corporations (Bank of America, Citigroup, etc.) they should be shattered like glass into many smaller pieces, together with ANY others who lay claim to an insurance fund sourced from the US Government. The simplest way would be to reinstate the Banking Act of 1933 (Glass-Steagall).

I'm becoming more cynical by the day. Even if the government "stays sovereign", in a society undergoing cultural, ethical and moral collapse those 'public serpents' motivated by the passion for money and power will always find a way to slither into a place of advantage.

[gwynedd1]

Re: One You Get Started . . .

I somehow missed (or forgot?) this kind response of yours.

I agree with breaking up non-financial corporations when they become so large they threaten to monopolize any industry - it's the nationalization that frightens me. As for financial corporations (Bank of America, Citigroup, etc.) they should be shattered like glass into many smaller pieces, together with ANY others who lay claim to an insurance fund sourced from the US Government. The simplest way would be to reinstate the Banking Act of 1933 (Glass-Steagall).

I'm becoming more cynical by the day. Even if the government "stays sovereign", in a society undergoing cultural, ethical and moral collapse those 'public serpents' motivated by the passion for money and power will always find a way to slither into a place of advantage.

Nationalization is more or less another facade of monopoly. However nationalization doesn't scare me. Its when they become so large they threaten to monopolize all life. The level of power in Washington is far too great to have any kind of meaningful republic. Our civil liberties are not protected by rhetoric, but by the political arbitrage that occurs between independent states. On the other hand the states may not be able to deal with such powerful multinationals. its a pickle.

[vt]

Re: One You Get Started . . .

Glass- Stegall does need to return.

In the 2008 meltdown the best move would have been to have strong regional banks take parts of the criminal ones, so instead of 5 large mega banks you'd have 50 financially sound regional's that weren't trying stupid investments or trading.

It makes not sense to nationalize large corporations because you wind up with an even larger, less efficient, more corrupt government. The Oligarchs would become even richer.

[don]

Rope-A-Dope

It's all down hill from here . . .