Imagine you as a private citizen are applying to buy a house.
You need a loan from the BANK during volatile times, much like the markets have seen in the last 1-2 years.
The BANK wants to know why it should lend you its trust, or money to you to the buy the house. Recently many of the BANK’s customers have not been able to pay back their loans to the BANK, so it wants to know as much as it can about you and your abilities to pay the loan back.
When you reply to the BANK that your “finances are private and to look into them would jeopardize your ability to pay the BANK back.”
The BANK replies with “Have a good day, may I show you the door?”
We need to realize that right now WE are the bank, and we want the Federal Reserves information on it’s (our) finances. Or we could say,
“May I show you the door..” -Brian
source: Reuters
WASHNGTON – Federal Reserve Chairman Ben Bernanke said on Friday congressional proposals to audit the Fed and strip it of regulatory powers as part of post-crisis reforms could damage prospects for economic and financial health in the future.
“These measures are very much out of step with the global consensus on the appropriate role of central banks, and they would seriously impair the prospects for economic and financial stability in the United States,” Bernanke wrote in a column posted on the Washington Post’s website.
The rare newspaper column by a Fed chairman comes shortly before Bernanke testifies before a Senate panel on his renomination to serve a second four-year term at the helm of the central bank and answers a series of steps on Capitol Hill that could diminish the central bank’s role.
Lawmakers are angry with the Fed over its emergency bailouts of major financial firms and its failure to prevent the contagion of mortgage delinquencies that crashed the financial system. A proposal to audit the Fed’s monetary policy deliberations won a committee vote recently over the objections of House Financial Services Committee Chairman Barney Frank.
—Imagine you as a private citizen are applying to buy a house.
You need a loan from the BANK during volatile times, much like the markets have seen in the last 1-2 years.
The BANK wants to know why it should lend you its trust, or money to you to the buy the house. Recently many of the BANK’s customers have not been able to pay back their loans to the BANK, so it wants to know as much as it can about you and your abilities to pay the loan back.
When you reply to the BANK that your “finances are private and to look into them would jeopardize your ability to pay the BANK back.”
The BANK replies with “Have a good day, may I show you the door?”
We need to realize that right now WE are the bank, and we want the Federal Reserves information on it’s (our) finances. Or we could say,
“May I show you the door..” -Brian
