Comment: There was little PRACTICALLY

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There was little PRACTICALLY

There was little PRACTICALLY wrong with FDIC insurance during Glass-Steagal, because Glass-Steagal prevented banks from doing almost anything with the money in your checking/savings account. That money could only go into very safe, low-free assets. So FDIC insurance existed for things like bank robberies, a bank going OOB and an acquring bank trying to stiff customers, etc. Plus, the legal system at the time did not honor or recognize many financial instruments that fall under the term "derivate", further limiting the banks's ability to take risk.

Now you can always make the case that there is moral issue with banks providing FDIC insurance....

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a