– Somebody’s been reading Steve Sailer.
– Tyler Cowen notes that Michael Blowhard is blogging again here (as Paleo Retiree).
– The most popular politician in DC (other than Obama) is a white woman.
– Inspector Gadget on diversity training for British cops, “we shouldn’t say ‘As sure as eggs is eggs’ in case it offends infertile women.”
But an agency that allocates credit to specific markets and institutions, or buys assets that expose taxpayers to risks, cannot stay independent of elected, and accountable, officials.
In addition, the Fed is now a gargantuan financial regulator. Its inspectors examine too-big-to-fail banks, come up with creative “stress tests” for them to pass, and haggle over thousands of pages of regulation. When we think of the Fed 10 years from now, on current trends, we’re likely to think of it as financial czar first, with monetary policy the boring backwater. . . .
when the time comes to raise interest rates, how can the Fed not consider that doing so will hurt the profits of the too-big-to-fail banks now under its protection?
I’ve been arguing for a while that if you want to understand the Fed, you need to take account of it’s mandate to regulate banks. Nice to see this point come up elsewhere.