onsdag 27 maj 2009

Waterboard the Fed

and waterboard as well Goldman&Sachs?

However, it is not possible to find out how much money Goldman Sachs borrowed, at what interest rate, and which assets it posted as collateral. The Fed has explicitly refused to make information about specific borrowers public. In fact, the inspector general who has the responsibility for overseeing the Fed told Congress that she does not have this information. Apparently the Fed doesn’t even trust its inspector general with information on its lending practices.

The Fed bears primary responsibility for the economic collapse. Alan Greenspan failed to take any steps to rein in the housing bubble and arguably even promoted it. It was inevitable that the collapse of an $8 trillion bubble would lead to a serious downturn of the sort that we are now seeing.

This incredible failure of the Fed should raise fundamental questions about its structure. Certainly it would be a positive step if the Fed were more answerable to democratically-elected officials and less accountable toward Wall Street bankers. A GAO audit would be a big step in the right direction.

Real Time with Bill Maher: Elizabeth Warren (TARP Overseer)

Gömställen finns inte inför den stora kollapsen

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