A friend brought this to my attention. The paragraph below is from MarketWatch. "Barney Frank Targets Fed Hawks. Wants to Strip Regional Bank Presidents of FOMC Vote.Rep." Heh, funny. Read on.
"Barney Frank, the top Democrat of the House Financial Services Committee, is taking aim at the hawks on the Federal Reserve. Frank announced Tuesday he will introduce legislation to strip the 12 regional Fed bank presidents of their votes on the central bank’s interest-rate setting Federal Open Market Committee. At the moment, several of these regional Fed bank presidents are more hawkish than the chairman, Ben Bernanke, and the majority of the voting members of the FOMC. That means they generally want the Fed to concentrate more on preventing inflation than stimulating growth. At the moment, several are urging the Fed to hike rates sooner rather than later."
My friend, a hedge fund analyst, writes: "So, let me rephrase Frank's actions: 'I helped blow up the U.S. economy by introducing massive moral hazard into the residential real estate financing market. Now, the Fed has introduced massive moral hazard into ALL markets by giving away money for free. This is definitely going to end well, and anyone at the Fed who disagrees should be fired by ME, even though the Fed is supposed to be independent.'"