Just as without the repeal of Glass-Steagal the housing-backed derivative market doesn't take off, threatening commercial banks' solvency.Can you tell me exactly what part of G-S is supposed to have exerted this effect? AFAICS a huge chunk of the subprime exposure wasn't covered by G-S in the first place. All the repeal seemed to affect was the distribution of profit.
"... They ne'er cared for us
yet: suffer us to famish, and their store-houses
crammed with grain; make edicts for usury, to
support usurers; repeal daily any wholesome act
established against the rich, and provide more
piercing statutes daily, to chain up and restrain
the poor. If the wars eat us not up, they will; and
there's all the love they bear us."
-- Shakespeare: Coriolanus, Act 1, scene 1
