Larger Fed Role Stirs Controversy

[brentspeak]

Source: Wall Street Journal

JUNE 18, 2009

Larger Fed Role Stirs Controversy
Critics Fault Handling Of Financial Crisis By U.S. Central Bank

By SUDEEP REDDY

WASHINGTON -- The administration's plan to make the Federal Reserve the nation's most powerful financial overseer has already become a flashpoint as lawmakers and consumer groups attack the central bank for its role in the financial crisis.

The proposal, if enshrined in law, would represent one of the biggest changes ever in the Fed's role. The central bank would win power to monitor risks across the financial system, and sweeping authority to examine any firm that could threaten financial stability, even if the Fed wouldn't normally supervise the institution. The nation's biggest and most interconnected firms would be subject to heightened oversight by the central bank.

snip

Critics who wonder about the wisdom of the move say the Fed failed to use its authority to address loose lending practices and the housing bubble that pushed the U.S. into a recession. The Fed responded aggressively after the crisis began, but some argue those actions were overly secretive.

snip

Mr. Dodd said there is well-founded concern the Fed's responsibility for monetary policy, including setting interest rates, could conflict with its role monitoring systemic risk. Fed officials have said they can handle multiple responsibilities. "There's not a lot of confidence in the Fed at this point, and I'm stating the obvious," Mr. Dodd said.

Read more: http://online.wsj.com/article/SB124525004449623489.html#mod=article-outset-box

[Metta]

1. All they need for it to be completely Machiavellian is for them to kill us, too.

Who comes up with this stuff? The Fed is a huge part of the problem and how transparent are they?

[angstlessk]

2. the Fed is just a banking syndicate? why give it MORE power...we need to TAKE AWAY their powers

this is VERY SCARY,...maybe Obama is a Muslin? (sheets and all?)

[TheMickster]

3. ok I'm lost

because I thought Obama was Satin. :silly:

[SpartanDem]

9. They are losing some major powers

they're losing their consumer oversight powers and their emergency lending power.

[ArcticFox]

4. The Fed NEEDS TO GO. Not be reformed, just GO AWAY.

Imagine the controversy if the media actually talked about what the Fed really is. Its just a cartel of the biggest banks, but the media all treat it as a government agency.

The bankers already control all the money and property. Now they want to give them the power to regulate companies outside the banking world too? That's just crazy.

Can't the Fed just be dis-established?

[twitomy]

12. Get rid of the Fed.

Stop Creating fiat (phoney) money out of thin air which is inflationary. Look at the history of inflation in this country. When we used sound money, inflation was non-existant. Sound money(backed by something tangible and of value) is not inflationary and helps curb govt deficit spending

[salguine]

5. THAT DOES IT...I WANT MY FUCKING VOTE BACK.

[pjt7]

6. Obama should be impeached for this

+

[salguine]

8. You realize you're opening yourself up to accusations of wanting a pony.

[Demeter]

7. Since the Fed Has Failed to Do the Jobs It Already Has, Why Give It More To Do?

[Odin2005]

10. I see the anti-fed nuts are huffing and puffing their hot air.

:eyes:

[MasonJar]

11. What an absurd decision. Greenspan was warned about subprime, etc.

and ignored the warnings. He has even been honest enough to admit his shortcomings.And now we are giving this nongovernment agency more power. It isn't even subject to oversight. I see Geithner and Summers in this; Obama is a fool to set the USA and the world up for more disaster in such a shortsighted and nonprescient manner. The bankers and Wall Streeters are not going to change. All they care about is being filthy rich no matter whom they hurt. Madoff proved that by shystering his own Jewish community and friends.

[gulfcoastliberal]

13. The "federal" reserve is not a government agency. Why not have Wells-Fargo or BofA "regulate"

lending?! Same thing! The federal reserve is a huge scam - the constitution calls for the treasury dept. to issue currency, not a private bank.

[TheWatcher]

14. "It doesn't exist" "You're a Conspiracy Theorist" "You know nothing about Economics"

"The Fed sets policy, so we should drool and follow"

"Greenspan never said The Fed wasn't Above The Law, even though he said it on 60 Minutes, so it doesn't exist, and you're a Conspiracy Theorist"

"Chess, Pony, Unicorn, 3 Months, 5 Months, 6 Months, 1 term, 2 Terms"

"Bernanke Said the Recession would be over by June, so we should give him UNLIMITED Power, and if you don't agree you'rejustajealousdoomsayernegativefakedemocratclosetrepublicansympathizerterroristdoompants"

Now that all the "Breathless Faithful" Talking Points are out so that they can save their breath and go look at sexy beach pictures, I must say that I concur with your Post.

But unfortunately, most of the American Public is not interested in what the Constitution actually SAYS, or what the Rule of Law Actually IS.

Only their PERCEPTION of what it is matters. That and being on the Winning "Football Team" so they can strut around and be cool and feel good.

We are not only up against a bunch of psychopathic Oligarchs, but a dumbed down public DESPERATE to follow them off a cliff.