| | | I didn't really have the time to respond properly to your post, so I'd like to add these thoughts. The most important point, in my view, is that the FED is run for bankers, by bankers. It is also my belief that their purpose is much more simple than they would have anyone else believe. That purpose is to make sure the banking system is as strong as possible. Period. End of story. All else is just talk, IMO. They want to deflect anything and everything from the system itself and onto themselves. This serves a multitude of purposes but mainly they get to be seen as "involved" in economy. Employment, housing, main street economics, etc... but in reality, none of those are even on the radar if there's any trouble within the banking system.
Each of the FED Heads gets to shoot off their mouth and talk about numerous issues. Almost always it's simply their individual opinion. Most is based in each person's political viewpoint. This gets the rest of the world worrying about what was said versus focusing on banks and how the system is performing. The latest spat being displayed in the media over GS and the FED is a perfect example, IMO. When you dial down, it's all about the banks and how they want the system to be running at any given point in time.
What the Fed has done has put the country in a tremendous debt bind.
No. I would completely disagree. It's what the banks did and what the FED is doing is simply trying to fix the things broken by the banks. I think they've done a very reasonable job within the banking system. However, since fixing the banking system doesn't necessarily translate to fixing the employment situation or what's actually happening on main street, they get everybody and their brother saying they've screwed up. I say no, they haven't but what they have done is to deflect the attention away from the banking system. They have shouldered the blame.
Under any normal reality, there's no way the FED would do what the FED has done and continues to do. When the bankers decided the time was right to take down Shearson Lehman and Bear Sterns, the ripple effect rocked the entire global financial system. This triggered earthquakes and avalanches unforeseen by those who chose to step aside instead of offer a helping hand to these drowning entities. The most egregious issue being a lack of confidence in any global bank. If you can take down Lehman and BS with such speed and ferocity, who could be next? Putting that puzzle back together has been one whale of a chore. |
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