Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: horsegirl48 who wrote (10777)	2/23/2001 3:34:16 PM
From: Raymond Duray	Respond to of 13572

Hi horsegirl, Re: It is rather amazing that all recessions that have occured have been brought upon us by the Fed, they should be protecting us not harming us. Not exactly correct. Before 1913, the Fed played no role in the panics of that era. <w> A few years ago, I read William Greider's "Secrets of the Temple". It is by far the best thing I've ever read on the FRB. One of the points that Greider made was that the FRB is a quango, that is to say, a quasi-governmental organization and as such, it actually has a couple of constituencies. The general public is not their primary client. Their most important goal is to protect the viability of the 29 (or so) primary dealers who are connected via Fedwire to the discount window at FRBNY and to the bond auction facilities. It was a real moment of clarity to me when I realized that the supposed mandates of the FRB, i.e. stable money supply and full employment, are simply a ruse for the real purpose of the central bank, which is to insure the financial health of its prime dealers. If you examine the machinations of the Fed in that light, everything becomes much more transparent. The implications for the punter in the last days of the great tech speculation? No mercy. Not even any concern, really, on the part of the FRB. The implications regarding Allen Greenspan meeting with Gray Davis regarding the "crisis" in power in California? If the banks aren't about to be destroyed, the FRB will take a hands off approach to California's growing economic concerns. Best, Ray :)