David Kaiser reiterates a critical point here:
"And--and this is the critical point--since the repeal of Glass-Steagall, they can, as I understand it, now borrow money from the Federal Reserve, whose rates have been at historically low levels for most the last decade--coincidentally (?) the period following the repeal of Glass-Steagall. And that is how the banking world has become almost entirely disconnected from the rest of the economy. It's essentially a game of monopoly in which loans at 1% interest take the place the $200 you collect for passing Go. In such a system, it's easy to bid up the price of both stocks and commodities like oil, even in hard economic times like these--and that is what has happened since 2009. And a rise of just 5% in the price of such assets obviously translates into huge profits and bonuses."
See also video on this particular theme, emailed today from realecontv.com
http://www.realecontv.com/page/1221.html
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