The blunt truth is that even if we had had President Obama’s financial regulatory “reforms” in place four years ago–reforms designed to prevent another financial meltdown–we would still have experienced a horrific economic disaster. In other words, the Administration’s prescriptions deal with the symptoms–and those badly–not the underlying causes.
The astonishing housing bubble could not have happened without the Federal Reserve’s easy-money policy, which got under way in late 2003. If not for the excess liquidity created, there would not have been sufficient fuel to distort the housing market and ultimately the financial system. Yet President Obama has remained mum regarding the need for a strong and stable dollar. Without such a policy it’s guaranteed we’ll continue to experience financial turmoil.
The Fed’s punishment for its wretched doings is that Congress will likely give it more regulatory powers. That’s the thing about government: The more it fails, the more power it accrues.
I have been in financial management for about 20 years now and have decided to initiate a blog that addresses the complex financial, accounting and general business issues that confront our society. These issues vary in content and complexity but there is no time in the past half century that has demanded more the identity and clarification of them. This is a start.
Thank you.
Brian John Schuettler
The astonishing housing bubble could not have happened without the Federal Reserve’s easy-money policy
The blunt truth is that even if we had had President Obama’s financial regulatory “reforms” in place four years ago–reforms designed to prevent another financial meltdown–we would still have experienced a horrific economic disaster. In other words, the Administration’s prescriptions deal with the symptoms–and those badly–not the underlying causes.
The astonishing housing bubble could not have happened without the Federal Reserve’s easy-money policy, which got under way in late 2003. If not for the excess liquidity created, there would not have been sufficient fuel to distort the housing market and ultimately the financial system. Yet President Obama has remained mum regarding the need for a strong and stable dollar. Without such a policy it’s guaranteed we’ll continue to experience financial turmoil.
The Fed’s punishment for its wretched doings is that Congress will likely give it more regulatory powers. That’s the thing about government: The more it fails, the more power it accrues.
Obama’s Financial Overhaul Is Largely Useless – Steve Forbes, Forbes
About Brian Schuettler
I have been in financial management for about 20 years now and have decided to initiate a blog that addresses the complex financial, accounting and general business issues that confront our society. These issues vary in content and complexity but there is no time in the past half century that has demanded more the identity and clarification of them. This is a start. Thank you. Brian John Schuettler