Glass-Steagall Returns by Default

QUESTION: If Europe is imploding, general global economy slowing and there is a liquidity crunch, Why in heaven is the Fed going to start taper in september?
Because of political pressure are they going to taper/rise rates and leave the Banks on their own with prop.trading? Has the Fed decided to really clean the system?
Thank you very much.
ANSWER: Proprietary trading is indeed coming to an end. We are seeing that in Europe and the Fed is taking that position. This is essentially the restoration of Glass-Steagall. Central Banks are not in charge of interest rates no matter what you may think. As long as people are willing to buy debt, then rates remain low. When capital begins to shift, rates rise. The flip-side of this is that pension funds are going insolvent. Without fixed income in the 5-8% level, they cannot meet future obligations. The low interest rates have not helped anyone but the banks. They pay 0.5% for 3 years money and want 4% when they lend it out fully secured. Capital shifts to equities because it has to see higher returns. This is why the DOW has been rising. QE has helped only the banks. They failed to pass on the stimulus and ending proprietary trading will be beneficial to the economy for they will have to start leaning to make a profit and that expands the economy whereas proprietary trading destroys the economy when carried out by bankers. The system is being cleaned-up for politically the bankers will not be bailed out this time. Proprietary Trading began 31.4 years ago and it is coming to an end precisely on the cyclical target of PI.