Reader comments
AP News Analysis: Fed under fire as public anger mounts

cesqy | 12:54 p.m. Nov. 22, 2009

The Federal Reserve is made up of a bunch of corrupt bankers and elite academics who suck fiat money from Main Street and deposit it on Wall Street. The inbred cronies create an unsustainable boom, siphon off the easy money, then ask the taxpayers to bail them out during the bust. The arrogance that leads to boom and bust cycles and printing more and more fiat money from thin air will destroy our country. A bought and paid for Congress must stop the economic destruction or face the wrath of the middle class.

Publius | 1:12 p.m. Nov. 22, 2009

We should never be affraid to know the truth. Auditing the Fed should be priority #1 for Americans of all stripes in order to know how much money has been created and where it has gone. An audit is both necessary and moral at this point.

Truth-Sayer | 2:28 p.m. Nov. 22, 2009

What the Fed did in bailing out these failing institutions is like me or you bailing out our next-door neighbor's failing business when our son's or daughter's have lost their jobs and need immediate help---or they starve to death.

Absolutely corrupt, wrong, "crazy" or whatever adjectives you want to call it!

The Fed seems to be accountable to no one, but it is in charge of regulating our economy? Attempting to regulate the economy by controlling interest rates alone is like trying to control the direction of a cruise ship with a broken rudder, it isn't going to work!

The free market should be left alone, supply and demand sets the prices in the marketplace of it's own accord if not tampered with. The concept of the free market does not mean there are no regulations whatsoever---but it does mean the consumer remains free to choose what is best; LIBERTY!

The Fed should be abolished. If anything, it is the Federal Reserve that needs to be regulated. If aid had been give to struggling mortgage holders rather than failing banks, this recession would probably be over by now.

Go figure!

Comments continue below

Anonymous | 2:49 p.m. Nov. 22, 2009

Conservatives never check facts when they seek out someone to blame for their failures.

I checked. Before the federal reverse, America had a deep recession every ten years. It was the depression of the 1890's that J. P. Morgan had to get banks to loan our government money.

Until years of republican deregulation that ruined our economy things have been much better than they where prior to the fed.

The real economic solution would be to get rid of conservatives and keep the fed.

the truth | 4:43 p.m. Nov. 22, 2009

"Anonymous | 2:49 p.m" shows what a bunch of IGNORANT loony nutbags the left are.

Deregulation did NOT cause thr problems.

IT was the federal government FORCING banks and other lending institutions to give out bad loans.

NO "deregulated" bank would give out bad loans by choice, it is simply bad for business.

Frank | 4:48 p.m. Nov. 22, 2009

Ha, ha, ha, there goes Anonymous again, trying to make political hay.

Before we blame the conservatives for deregulation woes, let's ask Barney Franks and his buddies about why Freddie Mac and Fanie Mae were not regulated when the democrats in congress voted down a republican request to have them investigated.

I think there is plenty of blame to go around if blame is what we want. Why not stop blaming each other and work together to solve our problems.

Roland Kayser | 7:06 p.m. Nov. 22, 2009

to the truth: The overwhelming majority of bad loans were made willingly by the banks. They made more profit on risky borrowers and thought they could sell off the bad loans as CDOs. They sold off most, but were left holding the bag with all too many still on their books when real estate prices collapsed.
to Frank: Democrats deserve a lot of blame for lax regulation of the financil markets too. I have a feeling that President Gore would have handled the banks pretty much the same way President Bush did. By letting them do whatever they wanted.

Anonymous | 7:26 p.m. Nov. 22, 2009

the truth | 4:43 p.m Roland is correct. The Community Reinvestment Act as signed by president Carter is merely a reporting requirement for America's largest banks. What's I find telling is the CRA was modified by conservatives and passed by a veto proof majority of a republican controlled congress. Fox never reported this fact?

Frank during Bush Georgia tried to regulation subprime loans only to be hold by the Bush White House that this was not a matter for states. It was a federal matter.

Earl | 8:44 p.m. Nov. 22, 2009

@Anonymous: what is this indisputible source that says we had so many depressions in the 19th century? And what do you think caused them? The cause of recessions and depressions/panics is always the same. I'd like to hear what you think it is.

They Won't Do It Replace Them | 9:10 p.m. Nov. 22, 2009

Don't mess with these legislators anymore, replace them. Vote EVERY incumbent out of office when their term is up plaese I beg you voters. They will not do anything but continue down the street they are on. We the voters have this country in our own hands, and NOW is the time to act.

Anonymous | 9:52 p.m. Nov. 22, 2009

The Fed is nothing more than a self-derving group of bankers who took an opportunity is appoint themselves the caretaker of the nation's wealth. The did it in the middle of the night, very secretively, and Congress, never having been confronted with a situation such as this did nothing and let it stand.
It is very important to elect Representatives who understand their very important responsibilities to We The People!

Anonymous | 10:37 p.m. Nov. 22, 2009

we may have had ups and downs before the Federal reserve ( which has no reserves and is NOT federal)
But never to the extent that came from after The illegal Fed reserve act of 1913.

End the fed and DEMAND a government that fits inside the constitution.

Central Banks | 4:38 a.m. Nov. 23, 2009

As much as we all hate the idea, a cental bank is as crucial to our economy as a rudder is to a ship. It's still congress spending the money.

The best thing to do is force our politicians to balance a budget within resonable timeframes and definetly when gdp is growing.

And push for campain fincance reform, a lot of things will be fixed just from that.

Earl | 7:59 a.m. Nov. 23, 2009

The primary purpose of a central bank is to create an inflationary economy. The people who benefit most from an inflationary policy are 1) the bankers themselves and 2) the federal government. The ones who benefit least are wage earners because wages are always the last price to be inflated. Governments like it because it allows them to pay down old debt with new devalued dollars. It is a hidden tax on everyone else, and is the source of booms and busts. There is no positive outcome of an inflationary policy. The central banking policy is the cause of the Great Depression and every recession since then, including the dot-com boom and bust and the housing boom and bust. As long as there are central banks, there will never be a stable currency or an end to booms and busts.

Earl | 8:03 a.m. Nov. 23, 2009

I should only add that the central bank policy of inflation will destroy our currency and lead to the ultimate collapse of the economy altogether. Other than that, they're wonderful.

Rick | 8:12 a.m. Nov. 23, 2009

It is ironic that the Congress that has run up such huge debts wants to audit the Fed. However, I'm still in favor of it.

Earl | 9:21 a.m. Nov. 23, 2009

@Rick: at least the Congress has to account for where the money is spent. The Fed can create hundreds of billions of dollars and distribute them without reporting who gets it and how much they get. There is NO accountability. At least with congress there's an appropriation process. The Federal Reserve can do anything it wants, anytime it wants and nobody can do anything about it.

Earl | 11:00 a.m. Nov. 23, 2009

@Central Banks: the laughable thing about your comment is that we "force our politicians to balance a budget within resonable timeframes and definetly when gdp is growing." When policitians have access to limitless money and an accommodating Federal Reserve banking system, there's no possibility in the world we'll do that. PEOPLE LOVE ECONOMIC BOOMS! Politicians want more than anything for the economy to boom so they can be re-elected. The Federal Reserve Board loves booms too, so they can be reappointed by the President. The President loves economic booms so he and his party can be reelected. There is NO WAY anyone will accept a policy of paying down the debt at the expense of creating a boom. Sheesh! Get real.

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