At INET Conference, Warren Adds Two Pieces to Her Financial Reform Framework

Naked Capitalism has the article At INET Conference, Warren Adds Two Pieces to Her Financial Reform Framework.  The article and the speech have important things to say about a number of politico/economic topics.  I’ll select a minute few to comment on here.

From the article comes the following excerpt:

Could a President use a trade deal to override financial rules? Well, it’s been a part of trade agreements since the late 1980s, including the WTO. In fact, WTO rules prevent firewalls like Glass-Steagall: when the U.S. negotiated it in 1997, they added an intent to repeal it, which of course happened two years later, in time for the WTO’s implementation. (Size caps on financial institutions are actually also banned by WTO rules.)

Financial services deregulation is more of an issue for the TTIP, the proposed U.S.-European agreement. European negotiators, if anything more embedded with their banks, have insisted on including a financial regulation chapter, which the U.S. has thus far rejected. By the time TTIP gets locked in, another President could be in office who wouldn’t be so rigid on that point.

Here is the YouTube video. Elizabeth Warren’s remarks start at the 12:00 minute mark.

I found one comment on YouTube particularly uninformed.


If you’re not talking about taking the power of money creation away from these private bankers psychopaths, then you’re just talking bullshit. Debt based money has to end.

In my response, I think I have finally figured just what is so wrong about this comment and almost everything that Ron and Rand Paul have to say about the subject.

Steve Greenberg

+youdodat2, You’ve been listening to the idiotic Paul family for too long. You are fooling yourselves if you think that it is only the banks that create private money. The stock market itself creates money with far less regulation than the banks. Anytime you have an asset that the accounting rules say you must put a value on, the frequently used technique of mark-to-market has the effect of creating money.

The Paul family is far too naive in their understanding of money. You might even go so far as to say that they haven’t a clue about what they claim to be expert in.

It is about time to stop equating what knowledgeable people like Elizabeth Warren and Bernie Sanders have to say about banks, banking, and money with what ignorant people like Ron and Rand Paul have to say. If you are going to listen to “experts”, you need to make sure that the person you are listening to really is an expert.

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