Comments on: One Thing Worse

By: David

David — Mon, 31 Mar 2008 18:56:11 +0000

Yes, and in that vain, I’d like to invite you guys to comment on our recent post about the Fed’s growing regulatory powers.

http://financetrends.blogspot.com/2008/03/fed-leviathan-grows.html

Be great to get your feedback when you all have a moment to read it.

By: BMB

BMB — Mon, 31 Mar 2008 18:31:19 +0000

It’s just so typical that government suddenly finds the ‘need’ to act AFTER the crisis has already occurred. It makes you wonder, as an example, just how bad the whole Social Security / Medicare funding issue will get over the years before they finally do something about it.

By: David

David — Mon, 31 Mar 2008 18:19:42 +0000

I totally agree with Momo on the importance of Ron Paul’s campaign in furthering this whole Fed debate. It was another point I wanted to make, but I don’t think I could have said it any better.

By: BMB

BMB — Mon, 31 Mar 2008 15:13:18 +0000

I guess you gotta do what you can – after all, they don’t have elections once a month…

By: Momo Fader

Momo Fader — Mon, 31 Mar 2008 14:37:29 +0000

I just called (my) Congressman Lloyd Doggett’s office in Washington DC and pretty much voiced the opinion I shared above. I asked if he had taken a position on the Treasury Department proposal, and if he would be participating in the Joint Economic hearing this week with Bernanke. The intern on the telephone did not know anything about his position or his schedule. I know it’s pissing in the wind, but if his telephone ledger shows more than a few calls about the Treasury and the Federal Reserve this week, perhaps he’ll take a more active interest. That’s the only way we can force any change in this representative democracy.

By: BMB

BMB — Mon, 31 Mar 2008 13:08:47 +0000

Sounds like your thinking cap is pointed in the right direction to me Momo.

By: Momo Fader

Momo Fader — Mon, 31 Mar 2008 12:44:21 +0000

What rankles me is that from my obstructed perspective these problems could largely have been avoided if the federal agencies presently responsible for regulation and enforcement had actually engaged in regulating and enforcing the rules. I’m all for streamlining the regulatory red-tape, but Paulson is fooling nobody here by rearranging the deck chairs, at least not me. The problem that got us into this mess was lack of enforcement of regulations. How is giving the Federal Reserve more authority going to help when they’ve already showed that they are not interested in exerting the authority they have had?

It is good to hear the anti-Fed sentiment pick up steam. I think that may be the biggest legacy of Ron Paul’s semi-quixotic run for President. He did more than just about anyone in the recent past to open the eyes of the public to the unchecked power of the Federal Reserve. The problem with Congress is that Ron Paul is a lone voice in the wilderness. We still have the likes of Schumer exerting undue influence on the process.

By: BMB

BMB — Mon, 31 Mar 2008 02:47:07 +0000

I doubt that we’ll see the Fed abolished anytime soon. But it certainly doesn’t hurt to have the discussion out in public. I don’t know how ’serious’ – or honest – the discussion will be. And too many people don’t really understand it – or care.

By: David

David — Mon, 31 Mar 2008 02:30:51 +0000

“The biggest, most reckless credit experiment in history has started to implode. It’s far too late to stop a complete systemic collapse now. Granting new powers to the agency most responsible for the mess simply does not make any sense.

In the long run, the only solution is to abolish the Fed, end government sponsorship of the ratings agencies, and return to sound monetary policies in Congress with a currency backed by hard assets instead of promises.”

Wow. It’s actually surprising to see this kind of sentiment being expressed so widely in recent weeks. This is actually kind of amazing to me, to hear more people really taking the Greenspan and Bernanke Fed to task and calling for the end of the Federal Reserve system.

Over the past few years I heard some very smart people say this kind of anti-Fed sentiment would really build up in the future, but this is just one of those times when I’m really amazed to see the whole process unfold.