President Obama takes on the financial industry

cruztbone

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yes, HR 1207 might actually help. in addition, any new law that can bring more transparency and checks and balances on the power of any one agency is for the good of the republic.
One book by a former member of the FED does not make it the equivalent of a holy writ. The FED , like most institutions , changes somewhat with the makeup of the membership.
and Alan Greenspan admitted he was wrong in his estimation of how well the financial sector could police itself. Stanford and Madoff are living testimony to that.
 

lucky8

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Whether you want to admit it or not, the FED is a "private bank" in name only .

You mixed up your words up here. If you were trying to be factual you would have said, "the Fed is a 'government agency' in name only." There have been some things that have changed recently making it more of a quasi-government agency some could argue. Where the biggest threat lies is giving the Fed even more powers without passing new laws to increase transparency. If new powers are given to the central bank, there must also be the passage of a bill giving congress regulatory authority over the bank(s) because of increased moral hazard.

If we're going to give the Fed more powers, then we either need regulation of the Fed, or we need to take away its printing power.

""People know that inflation erodes the real value of the government's debt and, therefore, that it is in the interest of the government to create some inflation," then-Fed Governor, now-Fed Chairman Ben Bernanke said in a famous 2002 speech." It's coming...


...and if you read that entire speech given by Bernanke in 2002, you'll see that it's pretty wild, it's almost as if he knew exactly what was coming...7 years ago...suspicious indeed
 
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cruztbone

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We finally agree on some issues,lucky8 !! huzzah ! yes, legislation will be needed to both grant powers to the Fed and give it more transparency. AMEN.
and thanks for the including the article by Bernanke. Yes, he was either quite prescient of the future or he was showing his hand as to the future of uncontrolled capitalism in this country.
in either case, he is a major improvement over his predecessor , just like Obama is as well.
again, thanks for sharing. and please keep posting, as will I.
 

Elmer Gantry

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Interesting piece on the Fed's reaction to HR1207.

UPDATE 2-Kohn warns Congress on meddling in Fed's affairs | Reuters

Sounds a bit like the barely veiled threat last year over the banker bailout bill.

Of particular note

" "The Federal Reserve strongly believes that removing the statutory limits on GAO audits of monetary policy matters would be contrary to the public interest by tending to undermine the independence and efficacy of monetary policy," he said."

A naked admission that they are above any regulatory authority, even the Governement Accounting Office

"Some investors are already worried that a new Fed program to buy longer-term U.S. Treasury securities has opened the door to a "monetization" of the debt.
The Fed rejects this view, but is clearly worried this impression could take firmer root among investors if Congress extends its influence over monetary policy. "

So buying your own debt and turning it into more money is ok but allowing the GAO to see your books will cause economic turmoil?!?