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A question about economics:


The Big Cat

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Is there a possibility of either candidate dismantling the federal reserve? Obviously neither of them are crazy enough to RUN under such a platform, but I have friends that fervently insist that the Fed deserves a huge portion of the blame for the current mess.

 

So my question has multiple parts:

 

Is dismantling the fed a possibility?

 

Which candidate would be more likely to support that?

 

Is that a viable solution?

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Is there a possibility of either candidate dismantling the federal reserve? Obviously neither of them are crazy enough to RUN under such a platform, but I have friends that fervently insist that the Fed deserves a huge portion of the blame for the current mess.

 

So my question has multiple parts:

 

Is dismantling the fed a possibility?

 

Which candidate would be more likely to support that?

 

Is that a viable solution?

 

No

Neither

No

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Wasn't Jackson a populist Democrat?

Yes he was, and drew support basically from the same areas that Bush did, the South and what was West then, and is mid-West now. Anti-Banking sentiment has been strong in American history, especially among rural farmers. I was just watch CNN and the term "Wall Street Bailout" isn't helping this. Who helpede the poor farmers in the 1920's and 1930's when the banks took their farms? I think some of that sentiment survives

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Is there a possibility of either candidate dismantling the federal reserve? Obviously neither of them are crazy enough to RUN under such a platform, but I have friends that fervently insist that the Fed deserves a huge portion of the blame for the current mess.

 

So my question has multiple parts:

 

Is dismantling the fed a possibility?

 

Which candidate would be more likely to support that?

 

Is that a viable solution?

McCain's right that the real culprit here is the SEC. They have oversight of the investment banking industry (or what's left of it), where virtually all of the excesses occurred. The Fed, Controller of the Currency and state banking regulators oversee commercial banks and thrifts, which by and large were prevented from taking such large bets on the sub-prime mortgage/MBS market.

 

IMO, the SEC's regulatory oversight of I-banks was woefully deficient, treating them just like any other corporate entitity, when in fact they are another breed altogether. Giving the Fed (or any new super regulatory body) complete oversight over the entire financial system is the direction that we need to go.

 

Just curious...what's you friend's beef with the Fed? Other than Greenspan keeping interest rates too low for too long (which is easy to see in hindsight, but was not so much criticized at the time), the only people I've seen beating on the Fed are those who don't know how monetary policy works.

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