What is Digg?15 Comments
- davidmihm, on 07/08/2008, -0/+9This is the LAST thing our economy needs. Clearly the smashing job the Fed has done managing interest rates and the value of the dollar over the last eight years qualifies them for even more responsibility.
- XombieRobot, on 07/08/2008, -0/+8The FED is already F'ing things up enough.
Giving them more power is not the right idea. They are creating money out of thin air and increasing inflation. - billbugger, on 07/08/2008, -0/+7Other countries do just fine without a private bank running their economy.
- inactive, on 07/08/2008, -2/+8Ain't the Fed raped us enough? I vote for it's DISMANTLEMENT
- Thrilltone, on 07/08/2008, -0/+5Fiddling with the interest rate is irrelevent when you are printing money non-stop, with nothing to back it. Our prosperity mushroomed when the dollar was adopted as the world's reserve currency in 1944. We badly abused our position these last 6 years and now it is catching up with us.
http://youtube.com/watch?v=3RhnHo3RDfg - Braddeharder, on 07/09/2008, -0/+3This is madness. Commodity back standards are what the world needs, such as gold and silver, if we are going to stabilize the world economy.
- Rapter09, on 07/09/2008, -0/+2Haha oh wow. The vultures aren't circling anymore, ladies and gentlemen; They're starting to land.
- oboredone, on 07/09/2008, -0/+2Other countries do just fine without a private bank ruining their economy.
There, fixed that for ya. - dilpil1, on 07/10/2008, -0/+2Yet another article dugg by people with no understanding of the financial system.
- salamnder, on 07/10/2008, -0/+2In the words of the comic book store guy, "worst idea ever." Before all the 13 year olds start bitching, I have a degree in Finance and worked as a bank manager for a year. The amount of money banks have to make loans comes from money deposited in checking and savings accounts as well as time deposits (CDs) and money from the FED. If the FED was taken out of the picture and banks needed to back 100% of their debt obligation then there would never be money to lend to consumers. The money in savings accounts and checking accounts can be accessed and FDIC rules guarantee the first $100,000 (there are ways to make that higher). CDs are less liquid, meaning that the bank can use that money for the given time period of the instrument (i.e. 9 months) so the bank knows they don't need to have that money on hand since the consumer is not likely to take the hit when they cash it out early. Now here is where the FED comes in. The FED supplies banks with money so they can lend for various reasons. This is dictated by the Federal Funds rate. Basically an interest rate that banks are charged to borrow money from the FED. If banks were to be required to have the financial backing to pay their obligations by 100% all of the time, there would be no money to lend. If you think the US economy is screwed up now, just wait until there is no money to lend. No new homes bought because there is no liquidity in the mortgage market. In times past the home was a great way to gain equity and then later, use the equity to secure loans when needed. Again this wouldn't happen because no banks would want to have an outstanding loan since they would need to collect more assets to have the 100% backup. Enough of my rant. + digg :D
- TimDigg, on 07/10/2008, -0/+2Madness?
THIS IS AMERICA!!!!!!
sorry I had to.... - Erich100, on 07/10/2008, -0/+1If there was ever a place where the ends justify the means this is it. Killing the fed, no matter how painful is the only way America can become America again. Too much power in the hands of psychopaths.
- treelovinhippie, on 07/10/2008, -0/+1Oh come on... this is the most depressing day on Digg I have ever come across. The US Senate giving immunity to telecom wiretapping, the US receiving threats from Russia because a US missile defense system was installed in Czech Republic, the US very likely to go to war with Iran within the next few months, and now the privately-owned Federal Reserve wants more power over the economy. The Fed is one of the most evil and illegal organisations ever conceived and is responsible for much of the economic collapses the US has experienced in the past and is experiencing right now.
I need a beer. - wynja, on 07/09/2008, -0/+1This is the same tactic that was used to justify the creation of the Federal Reserve. Now, they are wanting to broaden the power of the Federal Reserve so they are engineering a depression to get their point across.
- StingingNettle, on 07/09/2008, -0/+1Apparently the power to create money isn't enough.
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