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Aim is a Glass-Steagall Act PDF Print E-mail
Sunday, 25 September 2011 11:53

According to the Associated Press, New York Police detained about 80 people, which tried to organize a protest march against U.S. financial institutions, which, in their opinion, are responsible for creating the current crisis in the U.S. economy. Protesters, called "Occupywallstreet", hold more than a week in a protest tent camp near the New York Stock Exchange, promoting calls to protest against the "financial terrorism" of financial institutions on Wall Street. Protesters outraged by the reduction in the U.S. budget spending and corruption.

Today, demonstrators took to the streets of New York with the slogan "Money for health care, not for corporations," "Taxes for the rich." The main participants of the demonstrations were young people, who chanted his slogan: "Occupy the Wall Street all day, all week."

However, police in New York came pretty hard, starting a mass arrest of demonstrators. As a result, several demonstrators were beaten and were arrested 80 demonstrators. The "Occupywallstreet" first became known from the publication in the newspaper «Adbusters» on June 13, 2011, which began gathering of protesters in New York following the example of 15M in Spain, which were previously "occupied" Sol square in Madrid.

«Adbusters» - is a newspaper whose headquarters is located in Vancouver, Canada. In recent years, the publications in the newspaper «Adbusters» attracted public attention with his articles and satirical commercials against the cult of consumption. Among other requirements of the newspaper «Adbusters»: the U.S. refUSAl of most of its military bases, stationed around the globe, restoration of Glass-Steagall Act, the organization of the fight against Wall Street, referred to as "financial Gomorrah of America." Although other actions of protesters from Occupywallstreet are largely nature of propaganda, special attention should be given their demand for restoration of the law Glass-Steagall Act, which is far thirties already helped the U.S. to cope with a major financial crisis.

Glass-Steagall Act (Glass-Steagall Act of 1932), which was adopted in February 27, 1932 in the form of making the temporary amendment to Section 16 of the U.S. Federal Reserve, required separation of investment operations of banks with deposit and lending operations of banks. After entering into force of this Act, U.S. banks engaged in securities trading, it was forbidden to engage in their placement. The authors of the law believes, that it is the investment activities of U.S. banks in 1920 and caused the stock market collapse and the Great Depression in the United States.
And for the opinions of the authors, there is good reason, since before the Glass-Steagall Act, banks in the speculative fever, invest their assets in securities that significantly increases the risk for commercial and savings depositors of these banks in case of sharp declines in stock market.
After the Glass-Steagall Act, U.S. banks were deprived of the possibility of "blow bubbles", so can say, that it is the Glass-Steagall Act provided the solution of the crisis in America's real economy by redirecting investment flows from the sphere of financial speculation in the manufacturing sector of the U.S. economy.

However, on November 12, 1999, U.S. President Bill Clinton signed Grammy-Leach-Bliley Act, who filmed all the significant limitations that Glass-Steagall Act imposed on U.S. financial institutions.

In the press there are reports, that major U.S. banks, among them «Chase Manhattan Bank» and «Sanford Weill's Citicorp» spent more than $ 10 billion to lobby for the lifting of restrictions on banking and stock insUrance, which introduced the Glass-Steagall Act.

Repeal of Glass-Steagall Act allowed commercial banks of the U.S. again to begin to engage in investment activity, in response to a U.S. investment banks also expanded their activities in the form of originating and distributing complex derivative securities by borrowing money and putting them to work to sustain their profitability than they were rise to the first causes of the current financial crisis.

Thus, the protesters from Occupywallstreet had good reasons to identify as a place of its protests of Wall Street in New York and as one of its main goals is the renewal of the Glass-Steagall Act.



 


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