"Sweeping new powers to the federal reserve"? Whatwhatwhat?

[Manedwolf]

Oh, GREAT. The solution to the problem must be...MORE BIG GOVERNMENT! What the hell, George?

WASHINGTON (AFP)  President George W. Bush's administration will propose sweeping new oversight powers for the Federal Reserve in a bid to avoid calamities like the current subprime crisis, The New York Times reported Saturday.

Citing a summary of the plan provided by the administration, the newspaper said the Fed will gain the power to investigate any activities of financial institutions that threaten US economic stability, gather information and combat risks to the financial system as a whole.

The plan will be proposed on Monday, the paper said.

The Securities and Exchange Commission would lose some of its authority and is likely to be combined with the Commodity Futures Trading Commission that regulates trade in gas, oil and other goods, the report said.

The report came as new statistics showed US consumer spending stalled in February despite rising incomes as Americans boosted savings amid recession fears.

A Commerce Department report showed a meager 0.1 rise in spending, the driver of growth in the world's biggest economy. The figure was the weakest since September 2006 and matched analysts' consensus forecast.

The proposal is due to be unveiled by the Treasury Department.

It is part of a sweeping blueprint to overhaul the nation's financial regulatory agencies, which many experts say failed to recognize rampant excesses in mortgage lending until after they set off what is now seen as the worst financial crisis in decades.

Why not just nationalize them all! 

[Sergeant Bob]

What's next? Price and wage freezes? Didn't work for Nixon......

[lupinus]

this makes my brain hurt

[Headless Thompson Gunner]

No sense getting your panties in a bunch about a proposal before you know what it says. 

Wait until Monday for the proposal to be released.  Then take the time to actually read the proposal.  Then think about it some.  Then start ranting and raving, if you think it's appropriate.

[seeker_two]

...and they've done such a wonderful job so far... 

While we're at it, let's extend the same oversight to the oil/gas industry..... 

[The Annoyed Man]

I wouldn't have a problem with it if it were real oversight.  But it's just eyewash, since the Bush Administration is a wholly owned subsidiary of Wall Street.  It's like having Arthur Anderson audit themselves.   

But, for those of you who actually believe this is 'regulation', I ask you- why is this coming from a 'conservative' Republican administration?

[Finch]

No sense getting your panties in a bunch about a proposal before you know what it says. 

Wait until Monday for the proposal to be released.  Then take the time to actually read the proposal.  Then think about it some.  Then start ranting and raving, if you think it's appropriate.

I agree. I mean, it's not like the Federal Government has given me any reason to not have faith in their ability....right?

[Standing Wolf]

If government is the answer, it must have been a really, really, really stupid question.

[seeker_two]

If government is the answer, it must have been a really, really, really stupid question.

Best.  Post.  Ever. 

If the Bible is ever reopened for submissions, I'm nominating this......

...and "It's all fistful's fault."   

[LAK]

More big gov? Not quite; more like more big corporate government.

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[Waitone]

Why am I not surprised? 

[HankB]

For companies like Exxon and Bear-Stearns where sheer mismanagement or outright corruption at the top by the guys in the 40th floor corner offices are the reason for the losses, prison time - hard time, as in chain gang - in a highly public manner for the executives should be a part of the solution.

That, or defenestration.

[longeyes]

Did anyone say defenestration? 

Those who orchestrated the debacle will make sure they end up with more power.  That we can count on.  What's good for Goldman Sachs is good for America.

[LAK]

Can you say Banco Ambrosio, Savings and Loan? BCCI? To mention just a few of the headliners over a span of time.

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[The Annoyed Man]

Did anyone say defenestration? 

Those who orchestrated the debacle will make sure they end up with more power.  That we can count on.  What's good for Goldman Sachs is good for America.

Exactly right.  Big.Gov will make sure they don't lose their pensions, homes, luxury autos, yachts, Swiss bank accounts, etc.   Because next year, those same Big.Gov 'officials' will be in the employ of those same corporations. 

Un mano lavase el otro.

[longeyes]

We were warned, ironically, about "voodoo economics."  Well, the witchdoctors of the Wall St. are definitely winning.  Of course they now have quants with supercomputers to concoct new-wave mumbojumbo.  The thieves and mystagogues remain.

[WeedWhacker]

It may well be worse than we think.

"We No Longer Live In a Constitutional Republic"

Karl Denninger, a tech geek turned ISP owner turned market trader, has been posting information on the ongoing economic train wreck for the better part of a year (since I've started reading), and has just recently been attempting to draw attention to the question of legality, nay, Constitutionality of the Bear Stearns bailout.

More details relating to the above: http://market-ticker.denninger.net/2008/04/off-reservation.html

To those who've studied our early American history, this will not likely be a suprise, what with the twenty-thousand-ish gun laws on the books, but this disease is now apparently spreading to other areas of the government.

What're you going to do about it?

[Manedwolf]

Karl Denninger, a tech geek turned ISP owner turned market trader, has been posting information on the ongoing economic train wreck for the better part of a year (since I've started reading), and has just recently been attempting to draw attention to the question of legality, nay, Constitutionality of the Bear Stearns bailout.

With a degree in what aspect of economics, exactly? Masters or doctorate level?

Oh, you say they have a Paulian-style panic-font blog with lots of bolded text? Why, that must make then an authority on the economy!

Sorry, while I may disagree with aspects of the bailout, I'll get my economic theory from someone with a bit more qualifications.

[Balog]

But wait, you don't have a doctorate level degree! I'll just go ahead and ignore everything you say on the subject, then. 

I should note I haven't read anything by the guy Maned's pissing on; just a general observation about the comment.

[taurusowner]

I think the free market should just self-correct like it always does.  Keep the .gov out of it.

[WeedWhacker]

Karl Denninger, a tech geek turned ISP owner turned market trader, has been posting information on the ongoing economic train wreck for the better part of a year (since I've started reading), and has just recently been attempting to draw attention to the question of legality, nay, Constitutionality of the Bear Stearns bailout.

With a degree in what aspect of economics, exactly? Masters or doctorate level?

Don't you worry. Ben's got a PhD!

[Manedwolf]

But wait, you don't have a doctorate level degree! I'll just go ahead and ignore everything you say on the subject, then. 

I should note I haven't read anything by the guy Maned's pissing on; just a general observation about the comment.

I've never claimed to be an expert on the economy able to "document" the so-called "train wreck" as this guy is doing.

On the other hand, you passed judgment on my comment without even looking at the site, a sky-is-falling rant which has way too many separated lines, bolds, italics and exclamation points to be taken seriously, and even includes an American flag with a hammer and sickle on it to imply some level of panic. The fact that you do that, well, that's just good reason for me to ignore everything you say, period, isn't it. 

[Glock Glockler]

I've never claimed to be an expert on the economy able to "document" the so-called "train wreck" as this guy is doing

All this huff and puff because he mentions "Constitutionality", I thought conservatives were into adhering to the Constitution?  Also, why does his level of formal education make the slightest bit of difference, either what he says makes logic sense or it doesn't.

[Headless Thompson Gunner]

Also, why does his level of formal education make the slightest bit of difference, either what he says makes logic sense or it doesn't.

What he says doesn't make sense.  We're being asked to take it seriously anyway.

Nearly all of the discussion on the Fed and the economy doesn't make much sense.  Much ranting and raving from people who demonstrably don't know what they're talking about.  But since nobody else knows what they're talking about either, this tripe gets taken seriously instead of getting laughed at. 

Another thread asks when things are going to get better.  My belief is that things can't get better until people understand economics again.  You don't need a degree, but you do need to know what you're talking about, and what you're voting about. 

[Glock Glockler]

HTG,

If something doesnt hold water it's plenty sufficient to call them out on that, bringing up Ron Paul and post-graduate degrees actually takes away from the point that what they say doesnt make sense.