Comments on: Bloomberg: Fed Needs to Retain Independence http://www.ritholtz.com/blog/2009/07/bloomberg-fed-needs-to-retain-independence/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 23:28:32 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: ronin http://www.ritholtz.com/blog/2009/07/bloomberg-fed-needs-to-retain-independence/comment-page-1/#comment-192273 ronin Sat, 11 Jul 2009 05:23:33 +0000 http://www.ritholtz.com/blog/?p=31787#comment-192273 I want to know, why the buzz is AUDIT and the only thing these guys can say is, "The Fed's independence is important!" To me this has guilt and running scared all over it. I wish the fund I work for could say the same thing, "Audit? WTF? NO! We are independent from all that to protect your best interests." Madoff at least had his brother-in-law produce a phony audit, maybe the Fed could hire the same company? I'll bet Madoff's brother-in-law needs the work since his biggest and only client is in jail for 150 years.... I want to know, why the buzz is AUDIT and the only thing these guys can say is, “The Fed’s independence is important!”

To me this has guilt and running scared all over it.

I wish the fund I work for could say the same thing, “Audit? WTF? NO! We are independent from all that to protect your best interests.”

Madoff at least had his brother-in-law produce a phony audit, maybe the Fed could hire the same company? I’ll bet Madoff’s brother-in-law needs the work since his biggest and only client is in jail for 150 years….

]]> By: Marc1 http://www.ritholtz.com/blog/2009/07/bloomberg-fed-needs-to-retain-independence/comment-page-1/#comment-192063 Marc1 Fri, 10 Jul 2009 19:16:52 +0000 http://www.ritholtz.com/blog/?p=31787#comment-192063 The Federal Reserve is a private company owned by the banks. How can that result in independence? The concept of the banks owning a company that is given the legal right to set interest rates, print money and regulate those very same banks -- fifty years from now economists will ask, "How stupid could we have been? Federal Reserve vice-chairman Donald Kohn says the role as both regulator and regulated "are not incompatible." Yeah, I suppose, in the same way that it is not incompatible to have a system where I would have the exclusive right to issue speeding tickets to me. And Bloomberg News actually publishes this as though it is a plausible position. America's bullshit meter is broken. The Federal Reserve is a private company owned by the banks. How can that result in independence?

The concept of the banks owning a company that is given the legal right to set interest rates, print money and regulate those very same banks — fifty years from now economists will ask, “How stupid could we have been?

Federal Reserve vice-chairman Donald Kohn says the role as both regulator and regulated “are not incompatible.” Yeah, I suppose, in the same way that it is not incompatible to have a system where I would have the exclusive right to issue speeding tickets to me.

And Bloomberg News actually publishes this as though it is a plausible position. America’s bullshit meter is broken.

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