Isn’t The Federal Reserve As Much To Blame For The Financial Crises As Wall Street?

For instance wasn’t Turbo Timmy Geithner (current Treasury Secretary) the head of the NY Federal Reserve while all these „risky” investments were taking place??http://www.huffingtonpost.com/2009/12/12?
While applauding House passage Friday of overhaul legislation and urging quick Senate action, Obama expressed frustration with banks that were helped by a taxpayer bailout and now are „fighting tooth and nail with their lobbyists” against new government controls.
In his weekly radio and Internet address Saturday, Obama said the economy is only now beginning to recover from the „irresponsibility” of Wall Street institutions that „gambled on risky loans and complex financial products” in pursuit of short-term profits and big bonuses with little regard for long-term consequences……………The president also told CBS’ „60 Minutes” that „the people on Wall Street still don’t get it. … They’re still puzzled why it is that people are mad at the banks. Well, let’s see. You guys are drawing down $10, $20 million bonuses after America went through the worst economic year … in decades and you guys caused the problem,” Obama said in an excerpt released in advance of Sunday night’s broadcast of his interview.

10 Comments

  1. Boomer Wisdom wrote
    at 16:40 - 20th Styczeń 2010 Permalink

    State Capitalism caused the problem. Hence, blame the Fed and Congressional legislation that exempted their Wall Street friends from the natural forces of Free-Enterprise Capitalism.
    People working under Free-Enterprise Capitalism do not make stupid risky loans because they don’t have the luxury of screwing up.
    People working under State Capitalism can screw up all they want because they can simply use the coercive power of government to steal money from the private sector through confiscatory taxes.
    We little people are being eaten alive by a huge monster in Washington.
    Now, help me with this heavy crate of tea…

  2. nipples kostalakis wrote
    at 19:14 - 20th Styczeń 2010 Permalink

    wall street were gredy as is human nature, the fed are to blame for alowing them to be so greedy,
    of course im not saying this wasnt the intention of the fed, i see they have loaned most the bail out money to the gov for the tax payers to pay them back with interest, i am not blind

  3. DAR wrote
    at 23:13 - 20th Styczeń 2010 Permalink

    How does one distinguish the two?

    Also, you might be interested in the article I link to this question.http://answers.yahoo.com/question/index;?

  4. "Che" wrote
    at 0:12 - 21st Styczeń 2010 Permalink

    I think it has to do with Government intervention, government spending, and the Federal Reserve chairman that has to do with the crisis

  5. Cassius Cretorian wrote
    at 1:09 - 21st Styczeń 2010 Permalink

    One needs to be abolished and the other needs to be reinvented {conservative wise}

  6. Matt wrote
    at 3:47 - 21st Styczeń 2010 Permalink

    the entire government and all the states as well as retailer are to blame, its just that no one wants you to know that. so they are going to keep pointing fingers

  7. Ron R wrote
    at 9:05 - 21st Styczeń 2010 Permalink

    frying pan meet fire…..they are in it together…Geigthner was in the federal reserve when the banks collapsed and now he is in charge of it ….lol

  8. D C wrote
    at 15:26 - 21st Styczeń 2010 Permalink

    The deck has been stacked from the beginning.

  9. I cant believe this website wrote
    at 15:32 - 21st Styczeń 2010 Permalink

    They’re all screwing us. We need to take our government back from the fat cats in Washington

  10. Cold Hard Fact wrote
    at 19:45 - 21st Styczeń 2010 Permalink

    I agree that the Federal Reserve was responsible. I hear people say that Wall Street is to blame, but let me explain why I don’t really blame them.
    This all got started when the government forced Fannie and Freddy to fill up half their inventories with sub-prime loans. A company in a free market would never allow that to happen.
    Maybe too many mortgage brokers and securities dealers got out of hand, but they only were able to do what they did because the Federal Government regulated Fannie and Freddy. The securities dealers, like the rest of us, had no idea how bad the situation would become. I don’t really blame them.
    I don’t see any problem with companies asking for loans either, but I have a huge problem with the govt propping them up with taxpayer dollars.
    But if the Fed had not set interest rates too low, this never would have happened.

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