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Another couple of examples why the FED SHOULD NOT be a regulator of cds’s,OTC deriatives,et al"
From Dean Baker in the Guardian (why does this stuff always seem to be published overseas?):
"However, it is not possible to find out in detail how much money Goldman Sachs borrowed, for example, at what interest rate, and which assets it posted as collateral. The Fed has explicitly refused to make information about specific borrowers public. In fact, the inspector general who has the responsibility for overseeing the Fed told congress that she does not have this information. Apparently the Fed doesn’t even trust its inspector general with information on its lending practices."
"While more than 130 Republican members of the House of Representatives have signed on as co-sponsors of the bill, just over 30 Democratic members are co-sponsors. No one in the Democratic leadership has signed onto the bill. It is difficult to reconcile the Democrats’ position with President Obama’s often- repeated commitment to transparency. The resistance to transparency at the Fed will only encourage the public to believe that there actually is something to hide."
AND THIS would seem to be a good answer to both letting the risk takers take their risks with their own money instead of taxpayers and also address States budgetary problems.
3 Comments
Great title.
Recommended.
Thanks Boo; hopefully others are signing Jane’s petition.
” Richard Fisher, president of the Dallas Federal Reserve Bank, said: “Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature.”
“I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States,” he told the Wall Street Journal.
His recent trip to the Far East appears to have been a stark reminder that Asia’s “Confucian” culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.
The Oxford-educated Mr Fisher, an outspoken free-marketer and believer in the Schumpeterian process of “creative destruction”, has been running a fervent campaign to alert Americans to the “very big hole” in unfunded pension and health-care liabilities built up by a careless political class over the years.
“We at the Dallas Fed believe the total is over $99 trillion,” he said in February. “
http://www.telegraph.co.uk/fin…..money.html