Reform the Fed also. Doing less will not work.

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Secretary of Treasury Hank Paulson today proposed to revamp the US financial regulatory framework to strengthen the Federal Reserve’s powers to oversee products, transactions, and financial solvency across the landscape of American financial institutions. Specifically he proposed to eliminate the Office of Thrift Supervision

Does Greenspan have any personal liability for this financial crisis?

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Fortune Magazine’s investigative unit recently produced a video cast entitled “Bu$ted the Mortgage Meltdown” featuring commentary by former Fed Chairman Alan Greenspan who took the defensive arguing that the current housing bust was “an accident waiting to happen.”  In his words, “If it wasn’t the housing bust it would be something else.” Greenspan absolved himself of responsibility saying that: “we have been through […]

Investing in Uncertain times.

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It’s spring and optimism is in the air. The Fed is beginning to show proactive policy tendencies.  Bear Stearn’s shareholders are expected to get $10 a share instead of $2, and commodities are declining in price.  Soon first quarter earnings results will be out and results are, in our view, should not be expected to be terrible–

Car Salesmen and the Fed. Both are Selling you.

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Having recently purchased a new car, I was struck by the analgous nature of the whole purchase transaction of buying a car to the Federal Reserve’s actions to deal with the financial system credit crisis.  I mean both are using marketing gimmicks to hock overpriced goods by offering what appears to be a special deal. Think […]

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