tag:blogger.com,1999:blog-2361493254456057158.post3479673546095941036..comments2023-11-05T04:01:40.855-08:00Comments on That's just the way it is! Isn't it?: The Fed and irrational fearJasonhttp://www.blogger.com/profile/11707747781007743555noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2361493254456057158.post-24655254489451262832008-11-11T13:46:00.000-08:002008-11-11T13:46:00.000-08:00It seems to me that when the Fed reports that it h...It seems to me that when the Fed reports that it has lent $2 trillion of taxpayer money and <I>states that it will not disclose</I> to whom that money was lent, that transparency is hardly a term that can be applied. Either they should not be disclosing at all that the money was lent, or they should be disclosing the recipients. Doing it this way not only invites distrust, it utterly demands it. <BR/><BR/>The idea that they cannot disclose because if I know my bank is borrowing from the Fed I am somehow going to freak out and think the money in my bank is unsafe is just plain wierd.Jayhawkhttps://www.blogger.com/profile/00756807802218022043noreply@blogger.comtag:blogger.com,1999:blog-2361493254456057158.post-66661268655394066662008-11-11T09:29:00.000-08:002008-11-11T09:29:00.000-08:00Thanks for the brief, but concise history of the F...Thanks for the brief, but concise history of the Federal Reserve. As for the current Fed chair, Bernanke, isn't he an expert on the Great Depression, sworn not to make the same mistakes? I think he views the damage of a steep and long recession to be much worse than the upfront cost of avoiding such a serious downturn. It will be even more difficult for the Fed come January as the economy continues its downward spiral and the strengthened Democratic majority intensifies the hunt for scapegoats.<BR/>(As for brian gill's comment; isn't it a small commission within the Treasury that decides which banks to save?) Very good piece - you should be proud. SplendidMarblesSplendidMarbleshttps://www.blogger.com/profile/08504216947378691548noreply@blogger.comtag:blogger.com,1999:blog-2361493254456057158.post-42067638056768577072008-11-11T09:22:00.000-08:002008-11-11T09:22:00.000-08:00Two answer your question, No, twice a year is not ...Two answer your question, No, twice a year is not fast enough. Particularly considering the pace at which they are changing the rules of the game.<BR/><BR/>The simple and obvious problem we face in this "brave new world" that is being constructed under the banner of the 'economic crisis', is that the Fed in partnership with the Treasury has stepped far outside of the role dictated to them by law. <BR/><BR/>The purse strings that guard the taxpayers' money was relegated solely to the Congress by the Constitution, yet even prior to the passage of the "Economic Rescue Package", which gave sweeping new powers to the Treasury as well as the Fed and almost completely re-defined the way our economic system is structured, the Fed was spending hundreds of billions of taxpayer dollars to repair a breach caused by its own lack of "party crashing" if you will. <BR/><BR/>Considering the fact that the Fed is now printing money at a rate never seen before in this country (ultimately destroying our Dollar in the process) merely to meet the demands caused by overwhelming incompetence and/or mind-blowing neglect, those who have created this mess through greed, Congress included, yet still reap the benefits of Trillions of dollars in taxpayer bailout money should absolutely be forced to account for every penny.<BR/><BR/>We are a far cry away from familiar waters in respect to monetary and fiscal policies at this point and the American people are being forced to mortgage the future of their Nation in an unprecedented way. As such, I think common sense not to mention common courtesy strongly suggests that equally unprecedented transparency and accountability to those footing the bill is in order<BR/>and Constitutional constraints should be further applied, not ignored.Founders Nationhttps://www.blogger.com/profile/09267865563508624744noreply@blogger.comtag:blogger.com,1999:blog-2361493254456057158.post-70393277667778736392008-11-11T09:07:00.000-08:002008-11-11T09:07:00.000-08:00Thanks Jason, I didn't know that. I didn't know a...Thanks Jason, I didn't know that. I didn't know a lot of stuff till I started getting into it. Would it have been possible to have loaned the banks money with the caveat, loan it or loose it with in a specific time? That seems to be the world on the street that the banks aren't loaning the money.<BR/><BR/>On Tue, Nov 11, 2008 at 7:18 AM, Jason wrote:<BR/><BR/> Jason has left a new comment on your post "FED REFUSES TO IDENTIFY $2,000,000,000,000.00 BANK...":<BR/><BR/> The Fed is transparent in that it is subject to the oversight of Congress. Is twice a year not fast enough? The intent of Congress in shaping the Federal Reserve Act was to keep politics out of monetary policy. Legislation requires that the Federal Reserve reports annually on its activities to the Speaker of the House of Representatives.<BR/><BR/> http://nomedals.blogspot.comJim Campbellhttps://www.blogger.com/profile/02145340176850696932noreply@blogger.comtag:blogger.com,1999:blog-2361493254456057158.post-57857062093330713852008-11-11T07:47:00.000-08:002008-11-11T07:47:00.000-08:00Perhaps the Fed has begun to politicize itself. A...Perhaps the Fed has begun to politicize itself. A central bank that controls the money supply needs to be insulated politically. A central bank that starts engaging in other activities is painting a target on its back. Is it possible to buy up other types of securities to save a few banks and comment on congressional fiscal policy while remaining independent? I don't know. I just don't want Speaker Pelosi dictating monetary policy.Jacob Millerhttps://www.blogger.com/profile/02437204508228140181noreply@blogger.comtag:blogger.com,1999:blog-2361493254456057158.post-29074598946275622142008-11-10T18:47:00.000-08:002008-11-10T18:47:00.000-08:00Hi Jason,The sanctity of the Fed's political indep...Hi Jason,<BR/><BR/>The sanctity of the Fed's political independence extends only to monetary policy. When the Fed starts deciding which companies are worthy of taxpayer money, they are/should be subject to normal political constraints.<BR/><BR/>The beauty of open market operations is that the Fed cannot make the "who" decision. If it wants to affect the macroeconomy, it can inject or remove cash, but how the new money supply is allocated amongst economic players is entirely dependent on those players themselves, and not political determinations. <BR/><BR/>And for me, just as those open market operations are beautiful, the array of new 'bailout economics' (the easing of collateral requirements, diversification to riskier assets, etc. that you mentioned) paint a much cloudier and uncertain picture.<BR/><BR/>Keep up the good work!Brian Gillhttps://www.blogger.com/profile/04048749623060731637noreply@blogger.com