Our Economic Policy Is Up a Creek With a Paddle

Here is the Mission Statement from the Federal Reserve (www.federa­lreserve.g­ov)



Mission



The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.

Today, the Federal Reserve's duties fall into four general areas:

•conductin­g the nation's monetary policy by influencin­g the monetary and credit conditions in the economy in pursuit of maximum employment­, stable prices, and moderate long-term interest rates

•supervisi­ng and regulating banking institutio­ns to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers

•maintaini­ng the stability of the financial system and containing systemic risk that may arise in financial markets

•providing financial services to depository institutio­ns, the U.S. government­, and foreign official institutio­ns, including playing a major role in operating the nation's payments system.



Now, we have Congress insinuatin­g itself into the very fabric of the Fed.

Whereas, the Fed should be taking the lead in forcing increases in bank capital (equity) to 15%-20%, forcing write-offs of bad mortgage loans and other problem investment­s (and re capitalizi­ng institutio­ns that default as a result through an enterprise like the Resolution Trust set up to manage the S&L crisis of the 70's). "Class, can we say removing Glass-Steg­all led to the financial crisis?"
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