- Certainly...I do understand your point about historical prosperity, but I think a large part of that prosperity can explained by the complete destruction of the German, UK, France, Russian and Japanese economies during WW2. We were left pretty unscathed and without real global competition for 30.
I agree with your assessment that Glass-Steagall would add stability back into the financial sector. But, without similar rules for other multinational banks, US banks will be at a disadvantage globally. Banking profits and bonuses (and eventually talent) would move overseas and with it - most real financial innovation. So of that innovation is destabilizing and would not be missed, but other innovations have been very good for banks and society overall (think VC). Shipping both the good and bad overseas might be more stable, but US banking would stagnate and decline. IMHO, we need to cut with a scalpel and not an axe.