The Federal Reserve has has granted almost $2 trillion dollars in emergency loans, and refuses to identify the recipients.
The article goes on to say that the Fed is resisting disclosure because transparency might lead to lack of confidence...
MAGICAL M.C. TRANSLATION TOOL:
"We're taking your money, and you're too stupid to appreciate how we're using it, so just sit tight and let us do our thing."
I am furious, and you should be too.
If your bank decided to take money out of your account, and not tell you why, what would you do? Change banks, at the bare minimum. Probably file a lawsuit, raise a ruckus, etc.
Now the Federal Reserve is doing essentially that, on a scale of billions. People have already given them the right to take money out of their accounts, as it were. Aren't you interested in knowing where your money that they're taking is headed?
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.
The article goes on to say that the Fed is resisting disclosure because transparency might lead to lack of confidence...
"You have to balance the need for transparency with protecting the public interest,'' Talbott said. "Taxpayers have a right to know where their tax dollars are going, but one piece of information standing alone could undermine public confidence in the system.''
MAGICAL M.C. TRANSLATION TOOL:
"We're taking your money, and you're too stupid to appreciate how we're using it, so just sit tight and let us do our thing."
I am furious, and you should be too.
If your bank decided to take money out of your account, and not tell you why, what would you do? Change banks, at the bare minimum. Probably file a lawsuit, raise a ruckus, etc.
Now the Federal Reserve is doing essentially that, on a scale of billions. People have already given them the right to take money out of their accounts, as it were. Aren't you interested in knowing where your money that they're taking is headed?
Posts
2 comments:
This is just absurd. Our leaders told us the process would be transparent to the public. Unfortunately, I think by transparent, they meant "you won't see any of it so don't worry."
Keep politics out of monetary policy?
Considering the Federal Reserve Board of Governors are appointed by the President and confirmed by the Senate (and, of course, have their own political views going into the position), that goal is symbolic at best.
However, my point is that, in light of the current situation, it would well befit the Reserve to release the information.
Being subject to the oversight of Congress and reporting annually to the Speaker of the House (who is, by the way, totally unqualified for that position, and thus not oversight at all in a practical sense) does not mean that they are required to only give out that much information, it establishes a minimum. They could certainly release more if they chose, and now would be a good time.
Post a Comment