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JakilaTheHun (99.94)

Politicizing the Fed

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June 15, 2010 – Comments (6)

The Wall Street Journal has an excellent article today about Congress's latest attempts to politicize the Fed:

 

[Rep. Maxine] Waters and the House are hunting bigger game—to wit, the political allocation of credit. They want to put a network of operatives at the highest level of government who are responsible for making sure that regulators put the hiring of, and lending to, minorities at the top of their priority list. The House provision makes that very clear by making each diversity officer a Presidential appointee who must be confirmed by the Senate. The post, says the bill, will be "comparable to that of other senior level staff."

....

Mull over that one for a minute. Having recently lived through a financial mania and panic caused in part by political pressure for "affordable housing," Congress will now order regulators to allocate credit by race and gender. Isn't the point of this financial reform supposed to be to make regulators better judges of systemic risks, which means focusing on financial safety and soundness? If the Waters provision passes, federal regulators will have to put racial and gender lending at the top of their watch list when they do their checks on the banks and hedge funds they are regulating.

 

You can read the rest of the article here.  

 

This is in the wake of the equally asinine "Audit the Fed*" garbage that has been eminating from the House.  We seem to be witnessing a resurgence of William Jennings Bryan-like economic populism.   

 

* This is redundant.  The Fed is already auditied.   

6 Comments – Post Your Own

#1) On June 15, 2010 at 10:57 AM, ElCid16 (97.19) wrote:

From Wiki:

"On February 24, 2010, in congressional hearings with Fed Chairman Ben Bernanke, Waters, despite serving on the Financial Services Committee, revealed she is completely unaware of the difference between the Federal Reserve 'discount rate' and 'federal funds rate'.[39]"

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#2) On June 15, 2010 at 11:53 AM, TMFAleph1 (96.59) wrote:

Frightening, indeed.

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#3) On June 15, 2010 at 12:04 PM, tfirst (25.80) wrote:

The Fed doesn't need audited....it needs disbanded..

We are all owned by the Central bank of England of which the Fed is just a subsidiary. America is a corporation of which we are all just pieces of machinery. All owned by the Central Bank. You shouldn't be scared, you should be angry. Your freedom is just an illusion.

Open your eyes...

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#4) On June 15, 2010 at 12:08 PM, russiangambit (29.47) wrote:

Maxine Walters is one of this people who have repeatedly and consiously done something that is clearly wrong. She has her agenda and she is not willing to consider who and what gets destroyed in the process of achieving it or facts that are contrary to her agenda. To me such people are no better than criminals and definitely should not be in Congress.

However, I believe Congress should be in control of monetary and economi policy so that they are accountable. Right now they pressure FED all the same but are not accountable for the end result..If everything crashes around their ears may be there will be less such people in the Congress.

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#5) On June 15, 2010 at 3:15 PM, Tastylunch (29.48) wrote:

Wheeeee politics is so fun.

Good thing we don't have any real problems right?

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#6) On August 18, 2010 at 9:45 AM, TigerPack1 (93.34) wrote:

Jakila-

I hope you can join us tomorrow night at the LIVE Chat on TMFJake's blog... to discuss our WSS practice portfolios.

http://caps.fool.com/Blogs/live-chat-this-thursday/435184

-TigerPack

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