A look at the Fed’s mistakes and the fact that it hires thousands of economists and journal editors.
The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession, an investigation by the Huffington Post has found.
This dominance helps explain how, even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists. In the Fed’s thrall, the economists missed it, too.
I wonder if the only real question that will never be asked much less answered is whether or not the current melt down was purposefully caused. Not the actual meltdown per se, but the acceptance of all the known consequences, NOT RISK FACTORS, of an unregulated market.
AND STILL NO ONE IS IN JAIL AS THE BUBBLE IS REBUILDING.
Everything must change so it can stay exactly the same: meet the new Fed, same as the old Fed.
Really, do you actually believe it’s government for the people by the people. When money = speech, then more money by fewer people mean fewer people will have more speech then the entire population!
That’s what the Republicans are pushing, less free speech for the average American. And with out the ability of the public to discipline the Government what can we do???
#3–Pedro==how are we doing worse? Do you think the slate was wiped clean with the election or just how deep a hole do you think was dug for 8 years under Bush?
I do agree though–government option is a bad idea even as a compromise. It really should be single payer or nothing as that is the only way to get cost savings.
Is that what you are thinking of?
#2 Noname said “That’s what the Republicans are pushing, less free speech for the average American”
Is there any way we can get past the Democrat/Republican name calling????????? Can anyone really looking tell the difference?
term limits – term limits – term limits
Give me a break!!!!!!!!!!
The Federal Reserve’s Board of Governors employs 220 PhD economists
220. 220 economists. 220 PhD economists. And they couldn’t predict the crash.
#5 Ranger007 is right, republican/democrat = false paradigm.
Obama reappointed Ben Shalom Bernake. Why not toss a real molotov cocktail, Why have ALL of the Federal Reserve Chairmen been of a certain religious/racial persuasion who happen to have an exclusive national state in the middle east?
#6–Pedro==not very specific. Aren’t there many experts who say the bailouts should have been more, if not then, then now? Are your opinions so objectively true that you feel secure in overriding PHD and Nobel Prize Winners who spend their lives studying these things?
Not that they can’t be wrong, but what makes YOU so right?
A little less mindless partisanship would make your postings all that much better.
# 7 LibertyLover,
You would think “a good education” would give these 220 PhD economists immunity from group think, apparently not.
What good is an education if all you can do is agree with the group?
what… we’re quoting the huffington post here now… what next dunsberry?? geez
The Banking execs are the men who will not be blamed for the meltdown. Too paraphrase an infamous quote. Sounds better than “All your mortgages are belong to us.”
This article points out the circular logic that supports the mistakes this body keeps making. And it reminds me of the Global Warming crowd too. Which favors those that are of the “consensus”, that say it’s real and mankind is to blame. And totally ignore and dismisses all critics to this view, and its findings. In short, there is big rewards in believing in GW. And mostly just poverty and censure in not believing. So how can we REALLY be sure that the truth is being spoken, under such a bias?
Well, I don’t know if you’ve ever noticed. But the rich always get their cake and eat it too. Regardless of the mess the rest of us have to deal with. So they won’t be driving less, flying less, or polluting any less, come some drastic environmental decrees. I think it’s just an excuse to impoverish the rest of us, to raise the value of their stakes. Like Ian Fleming’s Goldfinger, trying to make the Fort Knox gold reserve radioactive, to raise the value of his own gold.
#11 Faustus, you’re an idiot, the news story is more than valid. Do some research.
Anywho.
I stumbled across and read this story early this morning, really glad you posted Guilherme. Your last several posts have touched on some VERY important topics that everyone should at least be familiar with. Doesn’t mean that you need to agree with them though.
Monetary issues, The Fed, Bernanke, the dollar, one world currency, Auditing the fed, gold standard, free market banking, etc. etc…
All of these things are going to be HUGE topics in the next months and upcoming years. Especially if the dollar collapses or we get high inflation.
Guilherme, If I could give you a gold star I would.
#13, Glenn E.
Brilliant point. Although, just because what the “elite” does impoverishes the poor doesn’t mean they are evil. People find ways to justify what they do so they can continue to live the good life.
Even Hitler thought he was doing the right thing when he killed millions of Jews.
Other than that, great point.
The reason the Federal Reserve and economists don’t promote free market banking is the same reason that the DOE and teachers don’t promote Free market Education. If they did, they would have to compete and wouldn’t be granted special privileges in the marketplace.
#16, GetSmart,
I’m confused…either that…or you’re confused…you appear to be against the idea of a free market (which we haven’t had) and at the same time you appear to be agreeing with the article. Although you didn’t outright say that, I think it is implied in your whole second paragraph.
So you don’t like the free market, and you dont like the Fed economists who have nothing to do with a free market…then…I don’t know. Clarify?
I’m confused and tired and going to sleep.
I totally agree with #16 GetSmart.
After taking in the information available in the mainstream public sphere and conspiracy theorists, I can’t really put my finger on anything! I don’t have a belief system right now since the information I am being fed is contradictory.
It seems like democrats+republicans have become the new conservatives and the conspiracy theorists have become the new progressives.
Now, if someone can actually explain the following questions:
1) What is paper money actually based upon? 2) How come the government can go on printing money at whim?
3) What difference does it make if the government or an individual prints money?
YES, I strongly believe the fed is manipulative, while the so called discipline of economics is fictitious and unnecessary.
#9, “a good education”
I am curious as to which institution handed out those PhDs . . . Puerto Rico? 😛
Group Think might be a good term, but if you read the article, you’ll see that if they spoke anything other than the truth, they were ostracized — kinda like Libertarians 🙂
Bend over, place your head between your legs, and kiss your ass goodbye.
#21
1. Audit the fed.
2. Allow competing currencies.
3. End the Fed.
4. ???????
5. Profit.
Simple.
Expecting economists to be free thinking is ludicrous. They are like people who can’t perform, teach instead (no offense to most K-12 teachers).
Going against the conventional wisdom in economics has the same penalties as scientists, doctors, investment managers, etc. It casts the rebels out of the group making it harder to earn a living.
Economists are people. Not logical, free thinkers. And it’s mostly speculation anyway. MY chart is better than YOUR chart.