ss_blog_claim=a290fbfb2dabf576491bbfbeda3c15bc

Wednesday, September 09, 2009

Some people behave, the FED doesn’t

The Federal Reserve spent $389.2 million in 2008 on "monetary and economic policy," money spent on analysis, research, data gathering, and studies on market structure; $433 million is budgeted for 2009.

"The Fed has a lock on the economics world,"
"There is no room for other views, which I guess is why economists got it so wrong."

The Fed failed to see the housing bubble as it happened, insisting that the rise in housing prices was normal. In 2004, after "flipping" had become a term cops and janitors were using to describe the way to get rich in real estate, then-Federal Reserve Chairman Alan Greenspan said that "a national severe price distortion [is] most unlikely." A year later, current Chairman Ben Bernanke said that the boom "largely reflect strong economic fundamentals."

The pharmaceutical industry has similarly worked to control key medical journals, but that involves several companies. In the field of economics, it's just the Fed.

Being on the Fed payroll isn't just about the money, either. A relationship with the Fed carries prestige; invitations to Fed conferences and offers of visiting scholarships with the bank signal a rising star or an economist who has arrived.


Greenspan: "You know, that's precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well."

But, if the intellectual edifice has collapsed, the intellectual infrastructure remains in place. The same economists who provided Greenspan his "very considerable evidence" are still running the journals and still analyzing the world using the same models that were incapable of seeing the credit boom and the coming collapse.

"they're essentially using taxpayer money to wrap their arms around everybody that's a critic and therefore muffle or silence the debate."

At the Journal of Monetary Economics, every single member of the editorial board is or has been affiliated with the Fed and 14 of the 26 board members are presently on the Fed payroll.

Taken from The Huffington Post.

I thought that the Mafia was a typical Italian product.
I would say that in Italy we are, at least, honest to admit that it exists...
Post a Comment
 
ss_blog_claim=a290fbfb2dabf576491bbfbeda3c15bc