Sunday, December 12, 2010

Rest Up, Scott Alvarez

Last week it was announced that Ron Paul will chair the House Subcommittee on Domestic Monetary Policy, which oversees the Fed. This is good news. Since the elections in November, I'd been wondering how many more politicians were willing to sacrifice themselves and/or their party by protecting the status quo as represented by Bernanke and the Fed. Boehner wasn't willing to risk it, even though it's safe to assume there was lots of angst on this.

There's a ton of subpoena-ready material, and I'm sure Ron Paul is prioritizing his list right now. Something that's probably on it is the issue of government intervention in the stock market. Paul has been on this for many years. In 1998, he submitted written questions to the Fed and Treasury in which he specifically asked about stock market intervention. He couldn't get a conclusive answer, with Treasury taking a full year to send its incomplete response. This has been stuck in Paul's craw ever since and has occasionally bubbled up in Q&A sessions with various officials. In the past year, two members of Congress have asked Bernanke explicitly and in writing about the intervention issue, and he blatantly dodged their questions. Maybe we'll see how he answers when the stakes are much higher.


Anonymous Anonymous said...

I've always assumed it was perfectly logical that there have been times when politics played a role.

After all, they do it in the bond market every. single. day.

They've been playing God with interest rates for so long, in plain sight, that nobody ever gives it a second thought.

No need for half baked conspiracy theories about a dozen or so men sitting in a room turning knobs: nowadays they release the minutes of said meetings.

Think about it... nobody bats an eye.

12/12/2010 7:33 PM  
Anonymous pete said...

Why would the Fed risk intervention when a phone call to Goldman, Morgan, or Citi would do the trick instead?

12/13/2010 5:08 PM  
Anonymous Goldhorder said...

Lmao at pete... R u kidding me? They don't have any money. You... Go away... Study fractional reserve banking and come back when you know something.

12/19/2010 7:22 PM  
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