I'm writing in regard to Bloomberg News columnist Caroline Baum's May 28 commentary about banking regulations. Baum's windy work of misinformation is a perfect example of what plagues contemporary American politics: It is the lack of facts based on reality.
For example, Ms. Baum claimed: "Yes, I know. Banks are complicated ... But banks will find ways to exploit new rules as quickly as lawmakers can write them." Thus she takes a myth and presents it as fact.
Recently, I read a rebuttal to Nobel Prize-winning economist Paul Krugman's writings about regulating Wall Street. One of Krugman's readers answered his 800 words in only 56 words: "The 1932 Glass-Steagall Act was only 39 pages and was effective for 70 years. No loopholes, no exemptions, no exceptions, no compromise, no ambiguous language. Until Congress reinstates it, moral hazard governs and the losers will be the American taxpayers. History will keep repeating itself unless politics and money are taken out of the equation."
What apologists for Wall Street are deathly afraid to say are two little words: Glass-Steagall. It worked perfectly for 70 years until Congress, at the bidding of Wall Street, gutted it.
D. J. Burke, Kennewick