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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (51502)	6/19/2009 1:56:41 AM
From: energyplay	Read Replies (2) \| Respond to of 219648

The FED screwed up with interest rates too low for too long. That is a different type of problem than the structual regulatory issues. We can fix that by replacing Greenspan with someone more like Paul Volker. Greensapn was almost in the right place if he had raised rates 50 bp after the "irrational exuberance" remarks. The FED is likely to be one of the few places with the data and knownledge to understand the banking stresses and systemic risk, and they need to be managed jointly. The FDIC and/or Treasury might be another place. Those are the only places that consistently attract the people who are bright enough, hard working, and connected enough to understand even the simple financial instruments. One of the big failures was the Office of Thrift Supervision, which was supposed to regulate S&Ls and Fannie and Freddie. OTS was under the Department of Housing, not Treasury. Most of the people at OTS had to take what Fannie and Freddie told them. The SEC has some issues too, look not only at their non-response to Madoff and others. There have been complaints from a number of people about some (not even most)SEC staffers not understanding short selling, or simple puts and calls. ********** Timmy G. is not my cup of tea, either, but he has a damn togh job to do, and it seems he is getting on top of it.