Economist Calls for Glass-Steagall, Warning About Yellen Plans
July 20, 2014 • 3:25PM

Peter Morisi, a University of Maryland Smith School of Business professor has written this week in Breitbart that Fed Chair Janet Yellen is compounding mistakes made by Ben Bernanke and Tim Geithner by covering up evidence of real inflation. He warned yesterday that such actions will only drive Congress to impose political constraints on the Fed that will make matters even more chaotic. He juxtaposed this dangerous nonsense with the obvious and simple solution: Reinstate Glass-Steagall:

"The Fed's credibility is already suffering greatly from the ill-considered actions of former Chairman Ben Bernanke and former Treasury Secretary Timothy Geithner. Together, they bailed out the biggest financial firms but largely left top officials, with the exceptions of those seized by the federal government, to continue to find creative ways to gamble and pay themselves outlandish bonuses. For example, although banks don't directly make private equity plays, they are financing those at alarming levels through questionable lending. "Instead of restoring Glass-Steagall and breaking up the biggest banks to a scale not too big to fail, they supported legislation to expand their regulatory empires with Dodd-Frank's costly regulations."