Posted on 11/29/2011 2:24:06 PM PST by blam
The Federal Reserve Did Everything In Its Power To Save Banks And Nothing To Save Jobs
Mike Konczal, New Deal 2.0
Nov. 29, 2011, 4:04
I never congratulated Charles Evans, President of the Federal Reserve Bank of Chicago, for dissenting in the most recent FOMC meeting on behalf of the unemployed.
(”Voting against the action was Charles L. Evans, who supported additional policy accommodation at this time.”) I’m a big fan of the Evans Rule and am surprised inflation doves haven’t been more vocal about it.
As Goldman Sachs noted, “This was the first ‘dovish’ dissent since December 2007 (President Rosengren).” Given that unemployment has turned out to be worse than the Fed’s projections at any time, it is about time that those who are worried about unemployment inside the Fed start making noise.
These first murmurs instead stand in contrast to the financial bailouts. Bloomberg just released a big story, based on its successful FOIA requests, that uncovered just how aggressive the Federal Reserve was with its emergency lender-of-last-resort powers.
Kevin Drum, Matthew Yglesias, and Paul Krugman argue that what is really shocking is how total the rescue and backing of the financial sector was while the real economy was left to rot. As Krugman puts it, “The real scandal isn’t so much that those banks got rescued as that the rest of the population didn’t.”
Part of why the bailouts were packaged the way they were was because Lehman Brothers’ bankruptcy went a lot worse than the Federal Reserve’s expectations of how the collapse of a major investment bank would go. When the collapse went far worse than its expectations, it reacted with maximum force.
(snip)
(Excerpt) Read more at businessinsider.com ...
source is a lefty blog
The Federal Reserve is banks. Several of them. Some from across the ocean. This is nothing new. This is the way President Wilson set it up.
Let the banks fail. ELIMINATE the FED. Throwing selective life-preservers to countries, banks (domestic & international), corporations, From an UNaccountable, UNaudited, working-outside-their-charter bureaucracy is not the answer.
DEFUND SOCIALIST collectives, foreign and domestic.
First, keeping the banking system from collapse does save jobs.
Second, while Tarp was about saving the banks, Quantitative Easing was about keeping interest rates low and that's about jobs, not banks.
The stimulus was wasted on Democratic pork. I was against the stimulus.
I was for TARP, but I didn’t like that they implemented it different from the way they sold it to us. But in the end all the TARP loans got repaid with interest, so I’m good.
You have no clue what you are asking for to let all the banks fail. Take an economic course some time and learn the difference between insolvency and a banking liquidity crisis. The banks weren’t insolvent, they were in a liquidity crisis, possibly induced by Soros and foreigners.
And, this is a surprise to whom??
In 50 years or so, we’ll be able to watch stuff on youtube explaining how the elite bankers manufactured this crises to grab assets, like one can now looking back at the depression and ww2. This country resisted central banking for half its history for the reasons we are seeing now. What a shame.
>> keeping the banking system from collapse does save jobs <<
Of course, but you’re wasting your valuable time by trying to reason with the Fed bashers hereabouts.
I’m more concerned about transparency than class warfare.
But, it’s obvious some get more transparency than others.
Not too wholesome for a truly competitive society.
I like a simple principle: if something can’t stand the light of day, it’s not worth doing.
Good luck with a barter system once all the banks fail. Without banks there is no money and no economy.
Nobody is going to give a crap about current youtube videos 50 years from now. What assets are they grabbing? Loaning out money and losing 50% on the transaction isn't an asset grab..
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