John Cochrane on the Fed
John Cochrane of the University of Chicago has a wonderful post up about the Federal Reserve, bank regulation, and mortgage modification:
The Fed was assigned great power after the financial crisis. It's more competent than most of the other agencies, and as a result of its historic independence can act with great power. But this situation cannot last. The Federal Reserve cannot command that one group of voters cough up $20,000 checks to another group of voters, and not expect those voters to want a say in the matter....our society is not built on faith in the wisdom of an unaccountable aristocracy with huge power and no supervision. That will be even more disastrous. That's where the Fed is going, and it cannot last.
by Editor | Feb 20, 2012 at 11:06 am
Related Topics: Banking, Capital Markets Regulation, Education, Federal Reserve, Housing
receive the latest by email: subscribe to the free futureofcapitalism.com mailing list