Capital Commerce

Obama's New Regulatory Plan: Cheese It, It's The Fed!

June 17, 2009 RSS Feed Print

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Quick initial thoughts on the Obama administration's financial regulatory plan: It would give the Federal Reserve new powers to supervise "systemically significant" institutions--ie, players who are "too big to fail." The Fed would also become part of a council of regulators that would monitor systemic risk throughout the entire financial system.

But it was the Fed's lack of foresight that partially got us into this mess to begin with. How is it a solution to give the Fed more responsibility and ask it to predict more about the economy?

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The Fed is an institution with an amazing amount of power. Power corrupts.
This power is in worse than public hands; it is in private hands. The so-called "Federal Reserve" is not federal, and it contains no reserves. It is no more a part of the government than federal express. Yes, the Federal Reserve is a private corporation and the most lucrative and powerful franchise in existence; and indeed, in history.
Look where it's gotten us. Are we any better off? Depending on which numbers you look at, we are tens of trillions of dollars in debt, with many more on the way.
The Fed is actually the third central bank the United States has had. The first two failed miserably and were disbanded. The current one is not doing any better than the first two. Read your history.
And read your constitution. It is illegal for Congress to delegate its responsibility for issuing and regulating our currency.

Ruggy of MN 4:04AM June 25, 2009

Matt Bandyk, it is not a solution. Obama is a puppet to our secret government (it is an establishment of rich bankers all of the world) Abraham Lincoln warned America about a secretive elite who woul try to take over America behind the scenes. He said it was a greater threat to our liberty than Tyranny. Woodrow Wilson also warned America about it. Go to youtube and type in Woodrow Wilson address-1914 Federal Reserve Act. In the address, he publically apologized to the American people for passing the Federal Reserve Act in 1914. He said he was duped/tricked into passing it by lobbist and special interest groups. The Federal Reserve Bank is a privately owned institution owned by a private large bank (shocked?)-yep I was too, until I decided to do some in depth research on the institution. The name is deceptive leads one to believe that it is Federally owned when it is indeed not. It has significant power over our economy too. It implements our monetary and fiscal policies. Although it is privately owned, the Federal Reserve Bank is overseen by Congress, but there is very little transparency. Congress has yet to see records on monetary policies set from ten years ago. If you look at the Federal Reserve's Act, the President and Congress appoint the board members, but the executive branch (President) has no power to ratify or veto anything the board or the bank does. I don't believe legislative branch does either. I could be wrong though. Double check it. Berneke is the President of the Reserves bank now and openly admitted that the Great Depression was aggravated by the Federal Reserves bank. They were raising rates when banks needed to be liquidized. The Great Depression expanded the federal government like never before. They have tremendous control over our monetary and fiscal policies because they establish the rates for Wall Street and other corporations. The Federal Reserve is secretive as well, often leading Wall street as well as other corporations to guess the rates for each fiscal year. This is wrong and very dangerous. This bank should HAVE NO POWER. It is privately owned by a bank, our tax dollars are generated through it. Congress has very little control over it and the very fact that Woodrow Wilson publically apologized for passing the Act (check it out on youtube people) says something about the Federal Reserve Bank and the people in charge of running it. Makes you wonder what President Lincoln was warning the American people about and why Jefferson warned the American people about bankers and the elite. There is a secret gov that is neither Repub or Democrat. The FRB was established to give them more power. President Obama says that it will be supervised. Congress hasn't been able to supervise this bank for over a decade. Remember people, who ever holds the money, controlls our country. So that means if gov holds majority of your money (taxes), in principle, they run our country. Pray for truth to be revealed

Sunshine of ME 5:25PM June 17, 2009

And the Fed probably has better information and sooner than about anybody else.
It boils down to citizens needing to find new ways to control their corporations so we do not find ourselves in the reverse-of-sense situation of being controlled by the corporations. Been there, done that.
Is it not true that AIG and some others made bets so big--and all over the world--that the U.S. Government has had to make counterparties whole in order to preserve our reputation and that of the dollar both inside and outside the USA? And citizens were powerless to prevent both the bets and the necessary bailouts? No more, please.

Muser of NM 12:18PM June 17, 2009