Wednesday, June 17, 2009

The FED? Please Be Serious!

Obama plans to give the Fed "sweeping new powers" over financial institutions to prevent cataclysms.

The very same Fed which pushed bubbles all around the financial map, beginning with the Bond Bubble (crash of money-manager in '87), then the dotcom bubble, and finally the housing bubble?

The Fed which then drained $100Bn from the system, which was the immediate trigger for the crash of WaMu?

The Fed which now shows about $1Trillion of "assets"--some of which it is legally barred from holding?

The Fed which is monetizing USTreasury debt at such a rate that Chinese college kids laugh at the USdollar and the Russkis are selling Treasuries in favor of "baskets" of money?

We have FDIC, SEC, and Treasury, OTS (scheduled for elimination) and credit unions. And the Fed already has some regulatory authority over banks. SEC could take on derivative trading with a line-item addition to its functions, and would be MUCH better-positioned to do the work.

It will be redundant, and not necessarily successful......

So I guess it is a good (D) invention, yup.

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