*** Official Politics Shitposting Thread ***

[wufwugy]

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The unfortunate part isn't that he said it; the truly unfortunate part is that he allowed it all to happen. Under his watch. He, and 99.5% of the others involved, got nary a wrist slap. The fact that he said this is just an indicator as to the WHY, why it happened under his watch

What do you think the solution to this problem is such that the type of problem is fixed and doesn't reoccur?

The Fed really screwed the pooch in 2007-08. And not only did they have no idea they screwed the pooch, but they believed they were doing the opposite and actually making bad things better. And showing how they screwed the pooch is really easy. They were just blind and ignorant and did things that textbook and consensus said was very bad. The Fed (and some other central banks like the ECB) were the cause of the 2008 financial crisis and the subsequent Great Recession.

How do you think we solve for this? Do we get better people at the Fed? The people at the Fed are already the best and the brightest. Seriously the smartest and most well-researched economists in the world work at the Fed. I don't think it's reasonable to think that having smarter and more well-informed people in power could have solved this problem. What I see as the key issue is lack of accountability. The Fed is a government granted monopoly. When it fails it still keeps all its power (indeed it even gains power). Its members never get blamed for anything (indeed they get defended for being saviors). So, how do we bring accountability to the Fed? Do we educate the people? Fat chance at that. Economists have far more education on monetary policy than is reasonable for the average person, and yet they are clueless about much of monetary policy and what goes on at the Fed.

The only solution I can think of is disrupting the government granted monopoly on money. That would bring accountability to issuers of currency, and in the competitive market that would arise once government stops granting monopoly power to one institution, the best results and the people who get the best results would rise to the top.