We find Alan Greenspan being pillared Today, because of his support of derivatives, and his maintenance of low Interest rates for too long a Period. Get Real! Greenspan was facing Opposition to any Change in that policy throughout his reign, all of it coming from the same Individuals criticizing him now. An ingredient in the Turmoil lies in the manner in which the Federal Reserve Board is managed, currently it consists of a form of oligarchy where dissent is never released to the Public. Congress should mandate every decision of the Fed be accompanied by a dissenting Opinion published along with the Majority decision, and listing the strength of the Dissent. It would solve many Issues of Conflict within the business world itself, bring to the fore potential alternatives to the current program, and list the contradictory forces potentially suppressing current Policy.
Does this appear to be sending Money down a Rat Hole? The Fed had to pony up another $40 billion to AIG because the original bridge loan was disappearing like water on desert sand; something like $61 billion was gone in a twinkling of an Eye, replaced with an even longer list of threatened Securities. There is really something to be said about letting Businesses fail naturally, and picking up the Pieces after; an element which possesses favorable Recovery capacities. The only truly significant indication states that the Fed is actually a poorer Investment strategist than your average Wall Street plunger!
Paulson’s choice to head the Recovery team highlights Business trepidation of the mix of Government and business. I actually have greater faith in Neel Kashkari than I do in Hank Paulson, but his only financial Record is writing the very loans which went to hell. It is the old proverbial setting a Crook to catch a Crook; this somewhat amended, setting a Crook to detect the Crime itself. The Whole makes me wonder why I have ever supported an Organization run by Politicians and Bureaucrats. lgl
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