In response to:

Did Glass-Steagall Put a Man on the Moon?

pkust Wrote: Jul 30, 2012 8:32 AM
I have another question for Mr. Calabria: How does the derivative adventurism banks indulged in during the housing bubble qualify as reducing risk? Seems to me the effect of derivatives is exactly the opposite -- it amplifies and extends risk.

I have to admit I have yet to view an entire episode of Aaron Sorkin’s The Newsroom, as I find a sufficient amount of fiction on the real news.  As Cato scholar Trevor Burris recently illustrated, the show plays pretty loose with the facts, completely distorting the substance of Citizens United.

The show’s recent explanation of the Glass-Steagall Act, which separated investment and commercial banking, is actually a fairly accurate portrayal of the religious-like devotion expressed by proponents of Glass-Steagall. During the short segment, which you can view here, we are led...