Quantcast

So... the government doesn't run the federal reserve?

Discussion in 'Politics & World News' started by skibunny24, Feb 26, 2013.

  1. skibunny24

    skibunny24 Enthusiastic Receiver of Reputation

    Rep/Likes:
    84 / 534
    Joined:
    Jun 16, 2010
    Messages:
    3,290
    Location:
    Renton, WA

    Please register to disable this ad.

  2. stoney

    stoney Part of the unwashed, middle-American horde

    Rep/Likes:
    118 / 1,155
    Joined:
    Jul 26, 2006
    Messages:
    13,483
    Location:
    Colorado
    Yeah. It's a collection of banks. The board members are elected by the member banks.

    Scary, huh?
     
  3. skibunny24

    skibunny24 Enthusiastic Receiver of Reputation

    Rep/Likes:
    84 / 534
    Joined:
    Jun 16, 2010
    Messages:
    3,290
    Location:
    Renton, WA
    Um, YES! Super scary! WTF??
     
  4. dante

    dante Unabomber

    Rep/Likes:
    11 / 8
    Joined:
    Feb 13, 2004
    Messages:
    8,998
    Location:
    looking for classic NE singletrack
    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).

    http://en.wikipedia.org/wiki/Central_bank
     
  5. ALEXIS_DH

    ALEXIS_DH Tirelessly Awesome

    Rep/Likes:
    19 / 108
    Joined:
    Jan 30, 2003
    Messages:
    5,286
    Location:
    Lima, Peru, Peru
    true dat.
     
  6. skibunny24

    skibunny24 Enthusiastic Receiver of Reputation

    Rep/Likes:
    84 / 534
    Joined:
    Jun 16, 2010
    Messages:
    3,290
    Location:
    Renton, WA
    Ok, that makes sense, it also sheds some additional light on the whole bailout thing. But my mind... still blown.
     
  7. stoney

    stoney Part of the unwashed, middle-American horde

    Rep/Likes:
    118 / 1,155
    Joined:
    Jul 26, 2006
    Messages:
    13,483
    Location:
    Colorado
    Read "the big short". It will explain a lot about it and the 2008 collapse.

    *edit* Too big to fail, as well
     
    #7 -   Feb 26, 2013
    Last edited: Feb 26, 2013
  8. Pesqueeb

    Pesqueeb bicycle in airplane hangar

    Rep/Likes:
    437 / 3,179
    Joined:
    Feb 2, 2007
    Messages:
    26,605
    Location:
    Riding the baggage carousel.
    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.