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Author Topic: "Bernanke opposes Obama's Fed reforms"  (Read 1366 times)
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WhiskeyGirl
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« on: March 24, 2010, 08:26:17 PM »

A political battle is underway in the United States over president Barack Obama's new rules to regulate financial firms.

At the heart of the Obama crackdown is the role of the US Federal Reserve. The legislation unveiled earlier this week suggests that the central bank would supervise only the biggest banks, those described as "too big to fail."

But the Federal Reserve chairman Ben Bernanke says he wants to have control over Main Street as well as Wall Street.

However, Ben Bernanke has faced a grilling in front of Congress, and was constantly reminded that the US Federal Reserve failed to see the global financial meltdown coming.

"There's been a massive failure on the part of the Fed in my opinion," said one member of the powerful House Financial Services Committee in Washington.

"I don't understand why a regulator can't take a look at a product and say this is so bad, this is so predatory that it shouldn't be on the market, and we're not going to allow it to be on the market,"
commented another.

"I think we would have had a much better outcome if we would have had people that were doing the job that they were already supposed to be doing," opined a third.

The world's most powerful central banker was making no excuses.

"We need to change our culture, our structure and our instructions to examiners and so on to make sure that we do a better job next time," Ben Bernanke acknowledged.

"So everyone has to do a better job. We are working to do a better job."

However, Democrat Gary Ackerman was not giving up on the Fed's flat-footed record in forecasting the global financial crisis.

"How do you miss it and how would have you done it different? Because if you're not going to do it different, then we're moving down the wrong direction here," he said.

"Well that's the $64 billion question you just asked," responded the Fed chairman.

"No it's a trillion, it's a multi-trillion dollar question," corrected Mr Ackerman.

"So there were mistakes and problems throughout the system. Other regulators and the Federal Reserve, private sector and even Congress made mistakes in this crisis," Ben Bernanke replied.

"We have been doing a lot of soul searching and a lot of changes."

'Too-big-to-fail regulator'

more here - http://www.abc.net.au/news/stories/2010/03/18/2849575.htm

Maybe it's time to audit and abolish the Federal Reserve?  To many conflicts of interest?
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WhiskeyGirl
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« Reply #1 on: March 24, 2010, 08:28:28 PM »

Quote
'Robust Role'

"It makes no sense to diminish the Fed's robust role in the supervision of a range of banking institutions, from large to small," Lacker said March 1.

Bernanke said the Fed was engaged in an "intensive self- examination" of its regulatory performance.

"We have adopted a more explicitly multidisciplinary approach, making use of the Federal Reserve's broad expertise in economics, financial markets, payment systems, and bank supervision," Bernanke said
.

http://www.smh.com.au/business/world-business/fed-doesnt-want-to-be-too-big-to-fail-regulator-bernanke-20100318-qg3f.html

Just a few thoughts here - what about all the conflicts of interest?  Goldman alumni? 

Hidden wheeling and dealing?  Super secret books?  Lack of audit?
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WhiskeyGirl
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« Reply #2 on: March 24, 2010, 08:35:44 PM »

Quote
The coming inflationary storm
 
US recession certain, China unstoppable -- that was the message on November 1, 2007.

It was delivered by a visiting guru who was pleased to remain anonymous, as he had passed well beyond the point where he gets any joy from being quoted in the media.

Henry had the great pleasure of seeing said guru last Friday. The meeting was held in one of Melbourne's finest gentlemen's club and there were (gasp!) lady guests present.

"Hold your Australian dollars," the guru advised.

Since he has such a good track record, we were forced to follow his logic chain and in Henry's case to take notes.

Today's story started in Tokyo. Japan is recovering only very slowly. There is no inflation, unit labour costs are falling and a Minister of Finance lost his job for wishing for a weaker yen and other indiscretions. His successor has also called for a weaker yen, abandoning the finance minister's golden rule of never talking your currency down.

For some reason, Obama wants a weaker dollar

Quote
China is fed up with America and has stopped, or greatly reduced, buying US government paper.

Americans use "missionary diplomacy" -- "We know what is best for you" -- and are still doing it, exhorting China to raise the value of its currency.

China says "stuff it" -- more politely than that, but you get the idea.

The US's budget deficit this year is $US1.4 trillion and set to rise to $US1.6 trillion next year, or 11-12 per cent of GDP. This is "in the Greek league".

Quote
"Bene's printing press" is working 24/7 without any holidays, a reference to US Federal chairman Ben Bernanke.

"We all learned in college," the guru said, "that printing money causes inflation."

But the question is what sort of inflation.

There is goods and services inflation and there is asset inflation.

http://www.theaustralian.com.au/business/opinion/the-coming-inflationary-storm/story-e6frg9ix-1225843684975

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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
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