My only reason for referencing Rome is that throughout all of its in-fighting, treachery, betrayal, greatness, open government, etc., Rome survived so long because there were always in place some "must always be so" rules.
For example and most importantly:
For example and most importantly:
During the days of the Roman republic (Democratic government), the river Rubicon marked the boundary between the Roman province of Cisalpine Gaul to the north-east and Italy proper (controlled directly by Rome and its socii (allies)) to the south.
Governors of Roman provinces were appointed promagistrates with imperium (roughly, "right to command") in their province(s). The governor would then serve as the general of the Roman army within the territory of his province(s). Roman law specified that only the elected magistrates (consuls and praetors) could hold imperium within Italy. Any pro-magistrate who entered Italy at the head of his troops forfeited his imperium and was therefore no longer legally allowed to command troops.
Exercising imperium when forbidden by the law was a capital offense. Furthermore, obeying the commands of a general who did not legally possess imperium was also a capital offense. If a general entered Italy while exercising command of an army, both the general and his soldiers became outlaws and were automatically condemned to death. Generals were thus obliged to disband their armies before entering Italy.
In 49 B.C. Julius Caesar led a single legion, Legio XIII Gemina, south over the Rubicon from Cisalpine Gaul to Italy to make his way to Rome. In doing so, he (deliberately) broke the law on imperium and made armed conflict inevitable. Suetonius depicts Caesar as undecided as he approached the river and attributes the crossing to a supernatural apparition. However, he did do it and the end of Roman democracy was just a declaration away. Evil triumphs when good men do nothing.
According to Suetonius, Caesar uttered the famous phrase ālea iacta est "the die has been cast" The phrase "crossing the Rubicon" has survived to refer to any individual or group committing itself irrevocably to a risky or revolutionary course of action, similar to the modern phrase "passing the point of no return."
Caesar's decision for swift action forced Pompey, the lawful consuls (C. Claudius Marcellus and L. Cornelius Lentulus Crus), and a large part of the Roman Senate to flee Rome in fear. Caesar's subsequent victory in the civil war ensured that punishment for the infraction would never be rendered. This took place during the time of the Roman Republic and, of course, ended democracy as Caesar established an empirical dictatorship and naming himself the supreme leader of all of Rome. He used the name Czar, which is suspiciously close to Citi.
Julius Caesar instituted his own firewalls that although often tested, never broke. 802 years later with the capital city long ago moved to Constantinople, Rome was still the heartbeat and soul of the vast Roman empire with a population of over 800,000 roman citizens.
But, a firewall had been shut off. During a long period of infighting and disruption between competitors wanting to be the Czar (CITI), all of the armies of Italy were out of Italy fighting wars of intrigue. (For you historians, I really shortened that 800 years that to make my point. For precise history read "Rise and Fall of the Roman Empire" or Wikipedia whichever your attention span will allow).
So along comes a well known German barbarian (the Romans used that name for anyone who couldn't speak Latin) by the name of Alaric whose people were known as the Visogoths and his army became embroiled in these wars. His people were pinched in between the invading Huns from the far east and just about everybody else.
He got this great idea that he would take his army of 30,000 and go down and negotiate with the head guys in Rome, who had been superior for so long that they believed their greatness came naturally and was all they needed to protect Rome (remind you of the US?).
Alaric actually had some pretty reasonable demands. He wanted to stay Roman and be the leader of his area along the Rhine way north in today's Germany. That was about it.
To his astonishment, the leaders of Rome who had not noticed all of the local armies were out fighting each other very far away told him "NO". Probably because they had never heard the term firewall.
So, he besieged them long enough to make them sick and hungry and ready to make a deal better than the one he was
My only reason for referencing Rome is that throughout all of its in-fighting, treachery, betrayal, greatness, open government, etc., Rome survived so long because there were always in place some "must always be so" rules. So he took some expensive silverware and paintings and left after he was promised his governorship up north somewhere.
But, the Romans had lied to him. So, he came back and went through the previous paragraph one more time, and then some rowdy slaves opened the gate to Rome, and Alaric and his army ransacked the place. This was the beginning of the end of the Roman Empire. The lesson? If you have an important city of 800,000 people in those times it might be a good idea to install a good firewall like say.... an army.
Which I am sure you have guessed leads us to Glass Steagall.
The Glass-Steagall Act, also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression.
Notice that the above reads that due to bankers, who had depositors who trusted those 5,000 banks to keep their money safe, seemed to have been doing some merger stuff which let stockbrokers into the bank buildings and very near the money of depositors, like you and me. It is fairly well known that stockbrokers want people to take risks whether the conservative depositors knew it or not.
The Stock Market failure of 1929, which led to the Great Depression, was triggered by stockbrokers using the deposits of banks for risky lending ventures and charging large fees.
So, what seems to me is that we had a lot smarter government before the internet and they decided to study the trigger and put together a FIREWALL.
The came up with the Glass-Steagall Act of 1933 to be a firewall to protect all Americans from the excesses that we have all just gone through during the last 10 to 20 years.
Reasons for the Act - Commercial Speculation
Commercial banks were accused of being too speculative in the pre-Depression era, not only because they were investing their assets but also because they were buying new issues for resale to the public. Thus, banks became greedy, taking on huge risks in the hope of even bigger rewards. Banking itself became sloppy and objectives became blurred. Unsound loans were issued to companies in which the bank had invested, and clients would be encouraged to invest in those same stocks.
Effects of the Act - Creating Barriers
Senator Carter Glass, a former Treasury secretary and the founder of the United States Federal Reserve System, was the primary force behind the GSA. Henry Bascom Steagall was a member of the House of Representatives and chairman of the House Banking and Currency Committee. Steagall agreed to support the Act with Glass after an amendment was added permitting bank deposit insurance (this was the first time it was allowed).
As a collective reaction to one of the worst financial crises at the time, the GSA set up a regulatory firewall between commercial and investment bank activities, both of which were curbed and controlled. Banks were given a year to decide on whether they would specialize in commercial or investment banking. Only 10% of commercial banks' total income could stem from securities; however, an exception allowed commercial banks to underwrite government-issued bonds. Financial giants at the time such as JP Morgan and Company, which were seen as part of the problem, were directly targeted and forced to cut their services and, hence, the main source of their income. By creating this barrier, the GSA was aiming to prevent the banks' use of deposits in the case of a failed underwriting job.
The GSA, however, was considered harsh by most in the financial community, and it was reported that even Glass himself moved to repeal the GSA shortly after it was passed, claiming it was an overreaction to the crisis.
Building More Walls:
Despite the lax implementation of the GSA by the Federal Reserve Board, which is the regulator of U.S. banks, Congress in 1956 made another decision to regulate the banking sector. In an effort to prevent financial conglomerates from amassing too much power, the new Act focused on banks involved in the insurance sector. Congress agreed that bearing the high risks undertaken in underwriting insurance is not good banking practice. Thus, as an extension of the Glass-Steagall Act, the Bank Holding Company Act further separated financial activities by creating a wall between insurance and banking. Even though banks could, and still can, sell insurance and insurance products, underwriting insurance was forbidden.
The 1999 Repeal of the Glass-Steagall Act of 1933 which had kept our economy firewalled for eighty years was performed by the Democrat President Bill Clinton and the Republican Congress. Nine years later in 2008, Wall Street crossed the Rubicon River and the die was cast.
That is what happened. When you are talking to your Imposter and fictitious lender, just remember this, whoever is on the other end of the phone is lying.
You will never be told the truth. If you want the truth start talking just as loud and threaten more than they have you. I did.
