Stiglitz: The Fed is "Corrupt"
Pic credit: Kenny Miller via Flickr
While Stiglitz is right, he's not telling us anything we don't already know.
Nobel laureate Joseph Stiglitz, a former chief economist at the World Bank, said that if a country had applied for World Bank aid during his tenure, with a financial regulatory system similar to the Federal Reserve's -- in which regional Feds are partly governed by the very banks they're supposed to police -- it would have raised alarms.
"if we had seen a governance structure that corresponds to our Federal Reserve system, we would have been yelling and screaming and saying that country does not deserve any assistance, this is a corrupt governing structure," Stiglitz said during a conference on financial reform in New York. "It's time for us to reflect on our own structure today, and to say there are parts that can be improved."
Don't forget the 6% dividend of Fed "profit" or "income" or "net income returned to the Treasury", whatever you prefer to call it:
To Stiglitz, the core issue is that regional Fed banks, such as the New York Fed, have clear conflicts of interest -- a result of the banks being partly governed by a board of directors that includes officers of the very banks they're supposed to be overseeing.
Again, totally. Stiglitz is capable of so much better.
Anyone want to trot him out as a candidate for Fed Vice Chair? Hahahahaha yeah right. What's that greasy bastard Larry Summers up to these days? He's up to keep the crack flowing, that's just what this administration needs.
Corruption. Haha. Yes? And?