When the 2008 crisis hit, this nation endured the most profound economic crisis in almost 75 years. The 2008 bailout was the greatest catastrophe since the Great Depression. During these trying time periods of 1999 through 2010, the banking sector repealed the Glass-Steagall Act. This was a piece of legislation in which allowed commercial and investment banks to merge and begin risky trading with FDIC insured deposits. As a result of this, major banks that merged had become “too big to fail.” These banks were actually on the brink of failing, which threatened the entire economy. This is the occurrence in which triggered the government to institute a bailout to rescue failing banks. I personally don't think banks can operate more effectively and …show more content…
I did not vote for this amendment for the basic reason that the consequences weren’t thoroughly reviewed. This was a time when our economy was early in its recovery. During this period it is crucial to ensure credit is available to help businesses expand and generate jobs. This act would’ve seriously affected the availability of credit, resulting in a loss of jobs in our country. If credit were to freeze, this would result in no payrolls for our working force, which would further result to job loss. Loans on cars and houses, credit card limits, and insurance policies of our people would be greatly affected because of this diminishing credit. Also, this would affect not only for our taxpayers but our state and local governments. These bodies would lose tens of millions, if not