Via Robert Gehl:
If he weren’t running for POTUS, the things Bernie Sanders said would be funny.
But he IS running for President, so the things he says are scary.
The Socialist candidate – who repeatedly claims he wants to “break up” the big banks, now wants to go a step further and get rid of Wall Street altogether, CNN is reporting.
Appearing on CNN’s morning show Monday, Sanders said America didn’t need Wall Street at all. He must mean that America doesn’t need a financial sector of the economy, because otherwise, he’s arguing against the physical street.
“How are we going to create wealth without Wall Street? I think we can,” he said.
We can? How do we do that, Bernie? The banks are on Wall Street, Bernie. Are we going to create wealth without banks? Where are we going to put our money, Bernie? Under our mattress? In a pickle jar in the freezer?
Whether or not you think Wall Street has too much power, the notion that you don’t need it to “create wealth” is exactly the reason why socialism fails. Someone has to hold onto the money, Bernie. That’s what banks are for. Wall Street – more importantly, the companies on Wall Street generate and re-invest massive amounts of wealth, Bernie. Here’s the video:
Sanders actually went into specifics about exactly how he would “break up the banks,” something that’s been just a populist sound bite until now.
“I think you can break up these large financial institutions,” Sanders said.
“How?” Cuomo asked.
“You can do it through Section 121 of Dodd-Frank. You can do it through my legislation. All you need is the secretary of Treasury to determine which banks, if they fail, will cause systemic damage to our economy. That’s not a hard thing to do,” Sanders said.
Just two weeks ago, when asked specifically how he would break up the big banks, Sanders told the New York Daily News “I don’t know.”
Someone must have told him. Section 121 of Dodd-Frank gives the Federal Reserve power to determine that a big bank poses “a grave threat to the financial stability of the United States.” The Fed can take a number of actions to get a bank back on track, including breaking it up.
Sanders has also advocated for reinstating the Glass-Steagall Act that requires financial institutions to choose between serving Wall Street with trading and big business deals or serving “Main Street” with mortgages and small business lending. The act was repealed by Congress in 1999. Glass Steagall would also keep banks smaller by re-imposing state boundaries on financial institutions. A Bank of America in Arizona, for example, couldn’t do business with a Bank of America in Wisconsin.