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Discussion in 'Politics & World News' started by skibunny24, Feb 26, 2013.
Um, wut? Seriously?
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Yeah. It's a collection of banks. The board members are elected by the member banks.
Um, YES! Super scary! WTF??
The theory is that an independent fed encourages it to act for the economic good of the country, *not* the good of the president/political parties. Imagine if 3 months before every election the president chopped interest rates, spurred borrowing and juiced the economy. He'd be far more popular even though it might not be good for the country as a whole.
Btw, almost all Central Banks are independent (see: Bank of Japan, etc).
Ok, that makes sense, it also sheds some additional light on the whole bailout thing. But my mind... still blown.
Read "the big short". It will explain a lot about it and the 2008 collapse.
*edit* Too big to fail, as well
I highly recommend "The Big Short" as a primer. "Too Big to Fail", or my personal favorite, "All the Devils are Here", are good reads, but a tad wonky.