As a possible diversion tactic, the administration, lead by treasure Secretary Hank Paulson, has announced sweeping plans to revamp the financial services sector. It will take years to implement and has been in development for the past year.
Paulson’s plan would also give the Federal Reserve more power to oversee investment houses. On some level, this is only fair, since the Fed is now allowing them to borrow at a discounted rate as commercial banks do. Yet Congress should worry about overloading the nation’s central bank with responsibility; under not-so-infallible-after-all Alan Greenspan, the Fed fueled a housing mania that set the stage for the current mess.
And on another note, take a look at this series of charts Le monde dans les yeux d’un rÃ©dac che, that supposedly reflect the world views of various publication. I had to brush up on my French (I know how to ask if I can sharpen my pencil, but that’s about it.)
Tags: Alan Greenspan