Although the economy has clearly begun to shake off the effects of the crash, it is only taking small steps forward. Analysts and economists agree that drastic policy changes or interest rate hikes at this point could well trigger another crash, this one worse than before as the fragile economy can not take another hit and bounce back easily. The Federal Reserve Chairman expressed similar views at his address before the Dallas Regional Chamber. [Read more…]
Bernanke Supports Current Decentralized Federal Reserve System of Monitoring Financial Institutions
Federal Reserve Chairman Ben S. Bernanke has supported the current decentralized structure of the central bank with 12 regional banks. He said that a central agency monitoring the activity of the larger financial institutions in the country alone is not sufficient. A decentralized network of oversight and monitoring is important to lend support to the smaller banks spread across the country. [Read more…]
Bernanke Defends Fed
In a great fit of hubris and apparent ignorance of the current financial crises that called for billions of dollars in bailouts to an industry seemingly hell bent on the destruction of the United States´ economy; Bernanke assured the Senate today that the Fed was more than capable of regulating banks despite the clear failures of the past.
In a statement of arragance reminiscent of a six year old child that seems to have the answer for everything or at least an excuse Bernanke said, “It’s hard for me to understand why, in the face of crisis that was so complex and covered so many markets and institutions, you would want to take out of the regulatory system the one institution that has the full range and breadth of skills to address those issues.” [Read more…]
