The ever growing Fed.
Federal Reserve Chairman Ben Bernanke quest for more power to centrally control the market make sense because the Federal Reserve is such a phenomenal success. Like any bureaucrat, Bernanke is seeking to increase its organization, despite evidences that might suggest the opposite approach. What makes this worse is that we are being requested to hand more authorities, backed by the coercion power of the state to an organization that is not controlled by the state (and claiming that it is not for profit is euphemism for great power and profit to its board members….):
Congress should consider giving the Fed power to set standards for capital liquidity holdings and risk management for investment banks, as it now does for commercial banks, Bernanke said. Already, the Fed has offered to be the lender of last resort for the investment banks.
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“This is the first time I ever recall the Fed coming out and arguing that it needs to have expanded oversight and responsibilities,” said former Fed official Robert Eisenbeis in comments to Bloomberg television.
I thought that the new chairman can’t be worse than Greenspan, who sold his soul in exchange of power , but apparently Bernanke proves me wrong.
Tags: Bernanke, Big Government, Greenspan, Regulations, The Federal ReserveRelated posts