<p>Good.</p>
<p>[TheHill.com</a> - McCain says he believes U.S. is in a recession](<a href=“http://thehill.com/campaign-2008/mccain-says-he-believes-u.s.-is-in-a-recession-2008-04-14.html]TheHill.com”>http://thehill.com/campaign-2008/mccain-says-he-believes-u.s.-is-in-a-recession-2008-04-14.html)</p>
<p>This is precisely why I don’t like McCain. One guy at Bear Stearns cashes out prior to a Federal Reserve bailout, and all of a sudden everyone on Wall Street is very greedy. In case McCain forgot, America has a capitalist economy. If the guy at Bear Stearns engaged in illegal behavior, then prosecute him. The fact that people all Wall Street want to make money doesn’t make them any more greedy than the average Joe on the street who would like to see his salary increased.</p>
<p>And someone needs to tell McCain that the Federal Reserve is not the federal government.</p>
<p>There is no Federal Reserve without the federal government.</p>
<p>So nobody has to tell McCain anything on that subject.</p>
<p>As someone who has worked in the financial markets for a very long time, I see Wall Street as more greedy than the average person.</p>
<p>It’s not even close.</p>
<p>I’m kind of liking what McCain is saying about the economy and the markets in the last couple of weeks. I like his views better than Clinton’s or Obama’s right now. </p>
<p>It’s just that war and the military, industrial complex…</p>
<p>Oh, and Bear Stearns is just a small part of the financial problems.</p>
<p>
That does not make the federal reserve the federal government. The owners of the Federal Reserve are the member banks. </p>
<p>Following McCain’s logic would be like saying someone who got an FHA insured loan has a house owned by the federal government. </p>
<p>The fact that McCain can’t tell the difference is sort of like his inability to tell the difference between Suni’s Shiates and Iranians.</p>
<p>Razorsharp, you keep looking at the tiny meaningless details. Tell me how McCain’s description of the Federal Reserve affects the economy or financial markets.</p>
<p>I think the average person is far more honest than the average Wall Street person. Most businesses and professions have some code of ethics. WS seems not to have any.</p>
<p>Barrons, I think you are right.</p>
<p>[FRB:</a> FAQs: Federal Reserve System](<a href=“http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#1]FRB:”>http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#1)</p>
<p>"Who owns the Federal Reserve?
The Federal Reserve System is not “owned” by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.</p>
<p>As the nation’s central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as “independent within the government.”</p>
<p>
The article is about McCain, it is not about the economy or financial markets. McCain wants to be president but he can’t distinguish between a bailout from the Federal Reserve and a bailout from the federal government.</p>
<p>
Wall Street in the financial markets are far more heavily regulated than any professions or regular businesses. But the last thing needed at this time is more regulation of Wall Street.</p>
<p>I agree. Just let our owners decide. They work for the betterment of all of us who are less worthy.</p>
<p>
</p>
<p>The Fed can call itself whatever it wishes, but the fact remains that government agencies do not issue stock. The Federal Reserve is not a part of the Federal government. It’s shareholders are the member banks, not the taxpayers of America.</p>
<p>“The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.”</p>
<p>“The Federal Reserve’s ultimate accountability is to Congress, which at any time can amend the Federal Reserve Act. Legislation requires that the Fed report annually on its activities to the Speaker of the House of Representatives, and twice annually on its plans for monetary policy to the banking committees of Congress. Fed officials also testify before Congress when requested.”</p>
<p>To repeat…</p>
<p>“Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.”</p>
<p>And who appoints the Fed Chairman?</p>
<p>
</p>
<p>The Fed does not issue stock but it prints money and lends to banks…in this case it lent money to investment bank JP Morgan to buyout Bear Stearns (the Fed had to bend the rules for this to happen). What did the Fed get for lending this money? The hot potato no one wants - mortgage backed securities - for collateral. If these securities go sour, ultimately it will be the American taxpayer that suffers…if the loans are repaid at a profit, taxpayers should get the benefit.</p>
<p>Outside of the securities laws WS has virtually no regulation. No capital ratio requirements, no fiduciary duty to the public.</p>
<p>“…if the loans are repaid at a profit, taxpayers should get the benefit.”</p>
<p>But we will, we will! Just trust them!</p>
<p>^ LOL! Yes, we made a profit…it’s being diverted to the Medicare expense bucket…<em>drop</em>…well that was spent wisely!</p>
<p>I think the profit last year was around $35 Billion–a drop but a BIG one.</p>
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</p>
<p>I worked on The Street (recognizable names) on an institutional trading desk for 15 years. And I testify to the truth of that statement.</p>
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</p>
<p>Maybe not everyone, but enough are (did you forget the dot.com bubble/crash, Enron, Tyco, WorldCom, etc.).</p>
<p>I’m all for a “free-market” system - but one that isn’t manipulated by insiders.</p>
<p>
Alan Greenspan caused the bubble/crash. Enron and Worldcom were the results of crooks. </p>
<p>The Tyco guy was put in prison for being a bad dancer and dumb enough to video tape it. Last I checked Tyco was doing ok. Enron and Worldcom are bygone.</p>
<p>You need to watch the movie Wall Street again. You know the one where Michael Douglas says, “Greed – for lack of a better word – is good.” </p>
<p>Oh wait, Michael Douglas didn’t do so well atthe end of that movie. :)</p>
<p>^ You must have missed all the stock “analysts” who were feeding the public misleading info. about crap companies (Greenspan, who had his faults, had no play in that).</p>
<p>And we’re not even talking about CEOs who give each other ridiculous compensation packages and golden parachutes by serving on each other’s boards.</p>
<p>Plus, I can give you many more examples - agri-businesses like ADM (price-fixing) or Monsanto (dumping of toxic waste), defense contractors like KBR and Bechtel padding their invoices, a long list of wrondoings by pharmaceutical companies, etc.</p>