Is the Federal Reserve solvent if Benranke won't let anyone look at the books? If the government had to authorize TARP money is that not a sign the Fed's assets and resources were tapped out?
Doesn't the TARP bailout now mean the taxpayers have a substantial diluted ownership interest in the privately owned Fed? How come no one is pointing this out? The Fed's self alleged independence is now total illusion and fraudulent.
One writer on this board today calls for banks to be broken down to smaller, manageable sizes. It is argued that no institution would be deemed too big to fail, nor would one institution threaten to bring down the entire house of cards.
Another asks if the Fed will remain solvent longer than the system.
The Fed in its current form is too big to manage. It's solvency is already suspect due to the continuing demand for secrecy.
If the Fed won't be abolished by a fearful Congress, then now is the time to decentralize it into the regional Fed districts,with each district autonomous and setting its own discount rates and overseeing the financial health of each district. As part of this, no commercial bank could operate outside of its region, except through an independent affiliate, not a subsidiary. And each district affiliate of say, Wells Fargo, would be under the superivision and oversight of Federal Reserve and FDIC regulators in each district. Ideally, each district bank affiliate of the current national banking enterprises would be spun out from the parent and set free as a smaller, more manageable, more transparent entity.
There would never again be a central Federal Reserve czar like Greenspan or Benranke because clearly the job was beyond their ability, The current financial mess is clearly all the evidence we need of that.
Disclosure: long AIB
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A place to post my writing in journalism, fiction, poetry and rants.
