Comments on: Paulson Proposes Regulatory Overhaul

By: gerryf

gerryf — Sat, 29 Mar 2008 22:20:04 +0000

wj,

while some of what you say is true, the congress in the past has done many great things when push comes to shove. I am not an advocate of crisis management, but I am an advocate of representative democracy which works when the people are engaged. They are engaged now more than they have been in a long while–maybe not enough, but it is a start.

And I prefer that hope to the bleak promise of a Federal Reserve that has bumbled along for nearly 20 years. And despite the fact that the board is made up of people who server 14 year terms, this has not proven itself to be a firewall to political appointments that ultimately favor a political ideology, the one lone supposed positive of the Fed.

Do you want to know why the Fed was able to move so quickly to bail out Wall Street–a Wall Street made up of people who decry bailouts for anyone but themselves? Because at present, there are five sitting federal reserve members–all appointed by Bush, with two seats vacant. A fed pushing the policies of the worst president since Hoover. Gee, I wonder why things are so bleak.

By: TerenceC

TerenceC — Sat, 29 Mar 2008 20:14:13 +0000

Giving the Federal Reserve more power is a disaster – it allows for the Federal government to exert enormous influence over a capitalist economy through an entity that is part “private” and part “public” banking system. The whole idea behind the Federal Reserve is to prevent financial panics leading to “runs” on a bank. No one keeps their money in banks, no one saves, banks sell insurance, credit cards, securities, bonds, mortgages, and loans (among other things) – if anything the Federal Reserve has outlived it’s usefulness and should be dismantled, it isn’t deserving of additional powers because it’s main function (lowering and raising of interest rates for overnight lending) is largely irrelevant. There are 3 branches of government not 4 – I fear that the already corrupt system would get even worse and the ultimate victim would once again be the people of the USA.

By: wj

wj — Sat, 29 Mar 2008 15:40:05 +0000

Right, Gerry. You expect (hope for?) a good job from an organization which has gerrymandered its districts so incumbants are mostly in for life, makes its decisions based on which lobbyist pays the best, and has repeatedly made poor decisions. I think it is at least arguable that the Fed has made fewer mistakes which harmed the economy than the Congress has.

By: Jim S

Jim S — Sat, 29 Mar 2008 15:39:16 +0000

Someone has to do the grunt work after Congress lays out the rules. If not the Fed then it would have to be a greatly revamped and strengthened SEC.

By: gerryf

gerryf — Sat, 29 Mar 2008 13:46:04 +0000

So, let me et this straight…we are going to give even more power to an entity that answers to virtually no one, makes many of its decisions in secret, which has repeatedly made poor decisions and lacks oversight by any one who is accountable.

I have a better idea…hey congress, do your freaking job.