Federal Reserve Part II - Social Engineering, Political Allocation of Credit...

[WhiskeyGirl]

The Senate Banking Committee “should carefully examine the impact of the Fed’s failures as a bank regulator, how such failures contributed to the financial crisis, and whether Chairman Bernanke’s performance as the chief regulator merits his reconfirmation,” Sen. Richard Shelby of Alabama, the top Republican on the panel, said in a statement.

Bernanke is already preparing to play a larger part in oversight, no matter how Congress rewrites the rules. Fed bank examiners are putting more emphasis on comparing the risks inside one large bank with those faced by other big lenders.

The stakes are high, said Henry Kaufman, president of Henry Kaufman & Co. in New York. Success in overhauling supervision of the financial system would mean “improved economic conditions for an extended period of time,” Kaufman said. Failure would mean a return to “continued volatility.”

The Obama plan also envisions a permanent role for Bernanke’s broadened use of the Fed as lender of last resort. The Board of Governors used emergency powers to rescue American International Group Inc., as well as markets for commercial paper, housing bonds and asset-backed securities. In the process, the Fed’s balance sheet expanded by $1.2 trillion over the past year.

What about the other trillions I keep reading about?  The loan guarantees?  Off balance sheet business?

Where is the transparency?  Why don't Americans' have the right to know where their tax money is being wasted?

Did Bernanke and others see the failure at Freddie/Fannie/AIG/Wall Street and do nothing?

What about Barnie?  Where was he during the disaster / attempts at reform since 2006?

Wasn't Barnie the one that insisted Freddie and Fannie were sound?  Insisted that McCain and others didn't want poor people to have houses?

Regional Fed bank presidents and scholars are divided over the Fed’s direction. John Taylor, an economics professor at Stanford University, is concerned that emergency loans will draw the central bank into allocating credit to politically favored industries, such as housing. Taylor, a former Treasury undersecretary, calls such actions by the monetary authority “mondustrial policy.”

Some investors say such loans add to political pressure to continue extending credit to satisfy interest groups, threatening the Fed’s goal of keeping inflation low.

A Federal Reserve that is a political arm of the Democratic party.  Are Barney's loans to appartment complexes and owners just the beginning?

No money for small business on Main Street.  Send the money to Korea and Brazil.

All the money for special interest groups and foreign business and workers.

http://businessmirror.com.ph/home/world/15154-bernanke-set-to-redefine-fed-mission-.html