Comments on: Governor Kevin Warsh: Defining Deviancy

By: Simon

Simon — Thu, 18 Jun 2009 01:52:18 +0000

The ability to clearly and reasonably articulate a point of view should not be confused with the ability to be correct. I prefer a mathematical proof backed up with hard evidence presented as a theory and open to modification should the evidence fade.

By: alfred e

alfred e — Wed, 17 Jun 2009 15:22:23 +0000

Just read a spot that bank regulation is going to be put off one year. Try forever.

Now things are shaping up to really clarify the political nature of the feds .

A new precedent is about to be set, the consequences of which can only accelerate our demise. Perhaps that’s a good thing.

As opposed to the Pecora hearing and Glass-Steagall and … types of legislation, nothing is going to happen. Nothing. Nothing meaningful.

That’s a new precedent. And a confirmation of BO’s political will.

Do not be surprised next year, and in 2012, when BO starts trying to pull rabbits out of a hat to feed the need for election frenzy. Confiscating gold, as Roosevelt did, will seem like a weak move.

By: Onlooker from Troy

Onlooker from Troy — Wed, 17 Jun 2009 13:55:55 +0000

Interesting read but once again I am very disappointed in a leading economist (in this case a Fed governor). Not once in this speech did he mention the word “debt.” No recognition that the debt binge was at the root of this and no mention of it’s role in the recovery. Instead he characterized it just as a “panic”, not the unraveling of unsustainable levels of debt that climaxed in the housing bubble.

Also he makes no mention of loose monetary policy by the Fed that is at the root of the debt binge/bubble. He talks about the possible choice of stability vs. growth in policy choices ahead, but does not recognize that Fed policy of easing at every hint of economic weakness over the last 25 years was an attempt to avoid any economic discomfort (i.e. to keep things stable) and led to greater and greater dislocations in the economy due to short circuited recessions that would have led to healthy shake outs of the economy. I could go on.

Mostly I see this as a political speech that is attempting to head off regulation of the banking industry. And no recognition of Fed policy errors that blew great bubbles in our economy. Very self serving, IMO.