Moral Hazard and the Federal Reserve

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  • #2556

    DuaneD
    Member

    I want to know why the Fed, a private corporation that was set up and controled by international bankers, is allowed to operate, unchallenged and without oversight, giving money to banks that have destroyed the economy of the entire world? Isn’t this a perfect case of moral hazard, when Goldman Sachs, I mean the Fed, can write checks to cover impropriety and accounting fraud, by funneling money to banks that control it and all its board members and chairmen? Isn’t something wrong when the Fed can create money out of nothing, trillions of it, filter it to banks to illegally prop them up and cook their books, and leave taxpayers on the line with the garbage?

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    Name : DuaneD, Sexual Orientation : Gay, Race : Black/African American, Religion : Secular Humanist, City : Washington, State : DC Country : United States, Social class : Middle class, 
    #21062

    Mara
    Participant

    your understanding of the Federal Reserve is flawed on several points. First, it is NOT a private corporation. It is a public/private partnership with oversight provided by a Board of Governors, members of which are appointed by the President. What you describe is, in effect, what was originally envisioned for the American banking system by Republican Nelson Aldrich. Democrats favored a reserve system owned and operated by the government that would end Wall Street’s control of American currency supply. The Federal Reserve Act of 1913 was a mix of the two. Government oversight and control of privately owned financial institutions.

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    Name : Mara, Gender : F, Sexual Orientation : Straight, Race : White/Caucasian, Religion : Agnostic, Age : 40, City : Atlanta, State : GA Country : United States, Occupation : data entry, Education level : High School Diploma, Social class : Middle class, 
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