APPYS,

I just read your message and I thought long and hard whether I should rejoin you. My hesitation is based on first, my observation that you lack the knowledge of Econ 101 and second, that people form their ideologies in their early twenties and nothing will convince them otherwise. Despite the fact that I am very busy, I answer you in the hope that others might find my post useful.

Your post reflects your ideologies and it is void of any facts. Fact: The Federal Reserve is a bank for commercial bankers. During the last twenty years or so it has been governed by two Republicans; that is Greenspan and Bernanke. The first was an economic advisor and the latter a economics professor at Princeton. Fact: Our age is overwhelmed with scandalous behavior and the communication media try to uncover stories about them. During the last 60 years, at least, there has been not a single incident of a scandal associated with Federal Reserve despite the fact that billions are transacted every day in their attempt to manage the money supply. The behavior of people suits the large shoes that their appointment entails. One might charge the bank with unssuccesful policies now and then but not with corruption. We all are now and then wrong in reading the future.

Fact: the Fed is an indepedent non-government organization. The president appoints the Chairman with the consent of the senate but this is where the story ends. The Board of directors makes policy depending on how they see the future course of the economy and indepedendly of Congress. Thank God.

Fact: some responsibility for the current fiasco should be placed at the door of Mr Greespan who allowed mergers to take place that resulted in mega banks. Fact: Henry Paulson was the secretary of treasure (Republican) and got $700 billions from Congress to help the banks, insurance companies and other companies related to the stock market. Fact; this was before Obama's time. Did they make mistakes? Yes . But they did not have much choice if they were to save Capitalism. Obama followed the policy. You may disagree with saving the big boys. I am very sympathetic to this view but the alternative was disaster. All this money we hear comes from treasury or at least the majority which, in turn, borrowed it from the Chinese. The role of the Fed was to decide about mergers and who was going down.

Fact: the commercial bankers and Wall Street were the principal culpits of the fiasco by giving loans to people that did not qualify.

I hope this helps. Sorry for the length.

And for the record, I have a Ph.D. in economics and I am currently university scholar at the Clairemont Colleges Graduate School and Chairman of the Board of a Publicly held company.