Thursday, June 18, 2009
Being the Federal Reserve II
President Obama proposed a plan that would give the Federal Reserve more regulatory power. My only question is why didn't the Fed use the power it already had to avert a near collapse of the global economy? It seems that Alan Greenspan, former Federal Reserve Chairman, allowed some things to occur for so many years and Timothy Geithner, the current Treasury Secretary, was over the Federal Reserve of New York during the time that Wall Street nearly brought the global economy to its knees. What was Geithner doing then? It seems that he was not able to handle the power he had in New York. Why give Geithner and the Federal Reserve greater power now? And make no mistake about it, we are talking about power here and lots of it! Maybe someone can break all this complicated stuff down to me like I'm a two-year old. Sometimes I wonder if the complications are purposeful.